Wall Street has advanced as progress toward ending the Iran war buoyed investor sentiment, while disappointing results from Broadcom led a chip sell-off that pulled the Nasdaq lower.
The blue-chip Dow surged, hitting a record closing high with a boost from healthcare and financial stocks.
The S&P 500 posted more muted gains while the Nasdaq ended nominally lower on the day.
Chipmaker Broadcom missed revenue expectations, sending its shares tumbling 12.6 per cent and casting a pall over the AI frenzy, which has sent chip stocks up more than 92 per cent so far this year.
The US House of Representatives passed a measure on Wednesday that would block President Donald Trump from continuing the war on Iran.
Additionally, a US-mediated ceasefire agreement between Israel and Lebanon, an essential condition of an Iranian agreement to a peace deal, bolstered optimism of a near-term resolution to the war.
A drop in front-month crude futures reflected hopes that tanker traffic through the crucial Strait of Hormuz could shortly resume.
On the economic front, initial jobless claims unexpectedly rose 6.1 per cent, and first-quarter labour costs and productivity were revised sharply lower.
A report from Challenger, Gray and Christmas showed layoffs announced by US corporations jumped 11 per cent in May to 97,006.
Nearly 40 per cent of those lay-offs were attributed to AI.
The Dow Jones Industrial Average rose 874.86 points, or 1.73 per cent, to 51,561.93, the S&P 500 gained 30.63 points, or 0.41 per cent, to 7,584.31 and the Nasdaq Composite lost 23.02 points, or 0.09 per cent, to 26,830.96.
Among the 11 major sectors of the S&P 500, healthcare and financial stocks boasted the biggest percentage gains, while technology shares were the biggest laggards.
The financial index's rebound followed a sharp sell-off in the previous session due to revived concerns over private credit.
Advancing issues outnumbered decliners by a 2.19-to-1 ratio on the New York Stock Exchange.
There were 308 new highs and 145 new lows on the NYSE.
On the Nasdaq, 3,082 stocks rose and 1,681 fell as advancing issues outnumbered decliners by a 1.83-to-1 ratio.
The S&P 500 posted 24 new 52-week highs and 11 new lows while the Nasdaq Composite recorded 100 new highs and 92 new lows.
Volume on US exchanges was 18.77 billion shares, compared with the 20.11 billion average for the full session over the last 20 trading days.
