Broadcom Surges Alongside Other Chipmakers – US Market Wrap

Big technology stocks set a record while Treasuries sank as Wall Street braced for a slowdown in the pace of the Federal Reserve’s interest-rate cuts ahead of a meeting next week.

The Nasdaq 100 climbed for the fourth week in a row powered by a Friday surge in Broadcom across the entire chip-technology complex. The tech-heavy gauge rose 0.8% to an all-time high for the second time in three days while other major US stock indexes struggled. The S&P 500 slid 0.7% this week while the blue-chip Dow Jones Industrial Average dropped 1.8%.

Shares in Broadcom jumped 24% to a record after predicting a boom in demand for its artificial intelligence chips and reaching a $1 trillion market value. Micron Technology and Nvidia also rose.

A widely expected quarter-point interest-rate cut from the Federal Reserve next week, could juice up this year’s seemingly unstoppable climb. The S&P 500, fueled mostly by tech names, has rallied 27% so far in 2024, and strategists polled predict it will outpace European peers again in 2025.

Meanwhile, the world’s biggest bond market sank deeper, putting US Treasuries on pace for their worst week in more than two months. The yield on the 10-year benchmark rose to 4.40%.