Jamie Spencer
The Nasdaq 100 touched a new all-time high for the second time this week, buoyed by a 19% surge in Broadcom Inc. shares, which reached a record level following optimistic AI chip demand forecasts. The tech-heavy index gained 0.3%, while the S&P 500 remained flat, and US Treasuries declined.
Broadcom’s rise lifted peers such as Marvell Technology Inc., Micron Technology Inc., and Nvidia Corp., contributing to a strong session for chipmakers. Broadcom’s market value crossed the $1 trillion threshold, amplifying optimism across the sector.
Federal Reserve Rate Cut Anticipation
A widely anticipated quarter-point interest-rate cut by the Federal Reserve next week could propel stocks further. The S&P 500, largely driven by tech, has advanced 27% this year and is expected to outpace European peers again in 2025, according to Bloomberg strategists.
However, some analysts remain cautious about tech’s dominance. “Tech stocks have reminded investors over the past week that the AI/quantum computing movement isn’t dying down anytime soon,” said Tom Essaye of The Sevens Report. Despite tech gains, overall market breadth remains weak, with an equal-weighted gauge of the S&P 500 sliding on Friday.
Bond Yields Rise, Fed’s “Hawkish Cut” in Focus
US Treasury yields climbed, with the 10-year benchmark rising to 4.38%, marking the worst week for Treasuries in over two months. Traders are closely watching the Fed’s tone next week amid growing expectations for a “hawkish cut.”
“The Fed is adopting a high optionality approach around a baseline that seeks to keep policy dynamically well-positioned as we move into the high-uncertainty Trump period,” wrote Krishna Guha of Evercore ISI.
Currency and Global Markets
The dollar steadied against a basket of currencies, poised for a second consecutive week of gains. The euro strengthened after a less dovish European Central Bank policy announcement, while the British pound fell following weak economic data.
Asian markets slipped as China’s economic planning meeting pledged to boost consumption but failed to provide detailed fiscal stimulus measures. Despite the lack of specifics, Chinese government bond yields hit record lows as authorities signaled further monetary easing.
Commodities Round-Up
WTI crude rose 1.3% to $70.95 per barrel, gaining nearly 5% for the week amid prospects of tighter US sanctions on Iran and Russia. Gold prices fell 0.7% to $2,662.79 an ounce.
Market Highlights as of 11:45 a.m. New York Time
Stocks
- S&P 500: Little changed
- Nasdaq 100: Up 0.3%
- Dow Jones Industrial Average: Little changed
- Stoxx Europe 600: Down 0.5%
Currencies
- Dollar Index: Little changed
- Euro: Up 0.3% to $1.0500
- British Pound: Down 0.3% to $1.2631
- Japanese Yen: Down 0.7% to 153.72 per dollar
Bonds
- US 10-Year Treasury Yield: Up 5 basis points to 4.37%
- Germany’s 10-Year Yield: Up 5 basis points to 2.25%
- Britain’s 10-Year Yield: Up 4 basis points to 4.40%
Commodities
- WTI Crude: Up 1.3% to $70.95 per barrel
- Spot Gold: Down 0.7% to $2,662.79 an ounce
