Most U.S. stocks saw gains on Thursday, primarily driven by easing oil prices, although the upward momentum on Wall Street was somewhat tempered by a slump in influential artificial-intelligence (AI) sector leaders. The S&P 500 advanced by 0.4% after a slight dip from its all-time high the previous day, while the Dow Jones Industrial Average surged by 812 points, or 1.6%. The Nasdaq composite also registered a modest increase of 0.1%.

A significant majority of stocks, including two out of every three in the S&P 500, benefited from a 3.5% drop in Brent crude oil prices, which settled at $94.43 per barrel. This reduction offset some of the week's earlier gains, which were driven by renewed tensions between Iran and the United States and its allies. Market sentiment suggests an expectation that the U.S. and Iran will eventually agree to reopen the Strait of Hormuz for oil tankers. Such a development would likely enhance crude flow, reduce oil prices, and alleviate inflationary pressures globally. These hopes, combined with robust profit reports from U.S. companies, had previously fueled a nine-day winning streak for the S&P 500, which concluded on Wednesday.

Several companies reported stronger-than-expected profits. Elanco Animal Health saw a 1.5% rise, and Zoetis, a supplier of animal vaccines, climbed 2.5%. These gains followed the U.S. Department of Agriculture's confirmation of the New World screwworm fly reaching south Texas, a parasite posing a threat to the nation's cattle industry. Toro, a seller of mowers and equipment, also added 1.6% after surpassing analyst expectations for its latest quarterly profit and revenue, leading the company to raise its full fiscal year forecasts.

Despite positive earnings, the high-flying technology sector experienced some declines. Broadcom, a prominent chip company, fell 11.8%, even though its profit and revenue exceeded analysts' forecasts. Its CEO noted that AI semiconductor revenue more than doubled to $10.8 billion during the quarter, with demand projected to grow over 200% in the current quarter. However, investors may have anticipated even stronger performance given Broadcom's 38.5% year-to-date surge, making it Wall Street's sixth-largest and most influential stock. Analysts have expressed concerns that AI stocks might be overvalued, hinting at a potential slowdown for the broader U.S. stock market after an unprecedented nine consecutive weeks of gains for the S&P 500.

Other AI beneficiaries also pulled back. Micron Technology, whose total value recently surpassed $1 trillion due to AI enthusiasm, dropped 5.3%. CrowdStrike Holdings, a cybersecurity firm, declined 4.8%, despite reporting stronger-than-expected profit and revenue. The company's CEO highlighted the intersection of cybersecurity and frontier AI, and CrowdStrike announced a stock split to make its shares more affordable. However, its stock had already climbed 59.5% year-to-date, and analysts noted that its financial beats were less significant than usual.

Outside of the tech sector, PVH Corp., owner of Calvin Klein and Tommy Hilfiger, tumbled 23.7%, despite exceeding first-quarter sales and profit targets. Its CEO cited the