Stock market today/ Wall Street/ tech stocks/ Broadcom AI forecast/ Federal Reserve meeting/ S&P 500 performance/ NEW YORK/ Newslooks/ J. Mansour/ Morning Edition/ Wall Street rebounded slightly Friday after a volatile week, with the S&P 500 rising 0.2% and tech stocks leading the charge. Broadcom surged 20% after positive AI-driven forecasts, while other semiconductor companies followed suit. Investors await next week’s Federal Reserve meeting, anticipating further interest rate cuts.
Wall Street Recovery: Quick Looks
- Index Movements: S&P 500 rose 0.2%, Nasdaq up 0.5%, while Dow dipped slightly by 16 points.
- Tech Sector Gains: Broadcom surged 20% on strong AI-related forecasts; Micron gained 3.6%.
- Federal Reserve Watch: Markets anticipate a third rate cut this year at next week’s Fed meeting.
- Global Markets: European stocks were mixed, while most Asian markets closed lower.
- Treasury Yields: 10-year Treasury yield rose to 4.36%.
Wall Street Recovers Slightly Amid Mixed Trading and Tech Gains
Deep Look
Market Performance
U.S. stocks showed mixed performance in Friday morning trading but managed to recover some of this week’s losses. The S&P 500 rose by 0.2%, though it remains poised for a weekly decline following three consecutive weeks of gains. The Nasdaq climbed 0.5%, bolstered by strength in technology stocks, while the Dow Jones Industrial Average dipped slightly, losing 16 points to 43,899.
Tech Sector Leads Recovery
Technology stocks played a pivotal role in driving market gains, as their higher valuations give them significant influence over the broader indices. Semiconductor giant Broadcom surged 20% after surpassing Wall Street’s profit expectations and delivering a robust outlook centered on its artificial intelligence products. The company’s decision to raise its dividend further buoyed investor sentiment.
Artificial intelligence continues to be a major growth driver for the tech sector, with companies like Micron Technology gaining 3.6% on expectations of sustained demand for AI-related products. The enthusiasm around AI has contributed significantly to the Nasdaq’s resilience and broader market movements this year.
Notable Corporate Performances
Furniture and housewares retailer RH, formerly known as Restoration Hardware, saw its stock climb 15.1% after revising its annual revenue growth forecast upward. The company’s improved outlook comes amid cautious optimism in the retail sector.
Economic Indicators and Fed Expectations
This week’s market rally faced headwinds from mixed economic data and investor caution ahead of the Federal Reserve’s upcoming meeting. The central bank is widely expected to announce its third interest rate cut since September. Optimism surrounding rate cuts has fueled record highs for the S&P 500, which has reached 57 all-time peaks this year.
Treasury yields ticked higher, with the 10-year yield rising to 4.36% from 4.34% late Thursday, reflecting ongoing investor adjustments to potential rate changes.
Global Market Snapshot
European markets traded mostly higher, though Britain’s FTSE 100 declined by 0.2% after data revealed a 0.1% contraction in the UK economy for October, following a similar decline in September. Asian markets closed predominantly lower, as concerns over global growth linger.
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