Broadcom Results Weigh Down Chip Sector | The Close 6/4/2026

Summary

Bloomberg's 'The Close' covers a market rotation from tech/ AI to healthcare and energy, with the Dow hitting a record high while the Nasdaq lags. Key guests discuss AI capex sustainability, the SpaceX IPO, Lululemon's earnings miss, and structural forces affecting long-term rates and emerging markets.

• S&P 500 rose 0.4% while Nasdaq 100 fell on broad AI-capex concerns after Broadcom's weak outlook.
• Dow Jones Industrial Average hit a record high, led by UnitedHealth and Goldman Sachs.
• Lululemon reported flat comp sales and lowered full-year guidance, sending shares down 9% after hours.
• Eric Van Nostrand (Lazard) argued long-term rates face upward pressure, favoring avoidance of long bonds and recommending emerging markets and European equities.
• Glenmede's Jason Pride noted equity valuations at the 90th percentile, advocating rebalancing and preferring equities over high-yield bonds.
• Space Capital's Chad Anderson highlighted SpaceX's IPO as a catalyst for the space economy, though the company remains private.
• Energy was pitched as a diversifier that improves portfolio risk/return, while healthcare was suggested as a potential turnaround sector.
• The Conference Board's Yelena Shulyatyeva warned of narrow labor market gains and consumer spending restraint due to inflation.