4:12pm: Stocks little changed
The S&P 500 and Dow Jones posted losses for the week, finishing Friday’s session flat at 6,051 points and down 0.2% at 43,828 points, respectively.
The Nasdaq, on the other hand, finished the session up 0.1% at 19,926 points as Broadcom traded at all-time highs adding 24.4%.
3:28pm: Likelihood of rate cut still high
The likelihood of a 25bp rate cut in December remains high, despite doubts about its necessity.
The Fed is unlikely to reverse course so close to its decision, barring a dovish surprise, according to Ipek Ozkardeskaya, Senior Analyst at Swissquote Bank.
"The probability of a 25bp cut slightly eased but activity on Fed funds futures continues to asses a very comfortable 96% probability for an additional 25bp cut that the US probably doesn’t need in December," Ozkardeskaya commented.
"But it’s probably too late to turn for the gigantic Fed ship a few days before their next decision – they only do that when it’s a dovish surprise. But the chances of a January cut are melting by the day."
2:35pm: Nasdaq ahead
The Nasdaq has bounced back from earlier lows, moving around 0.1% ahead of opening levels in midafternoon trading.
The S&P 500 was also trading around the flatline, with the Dow still underwater about 0.1%.
1:50pm: Stocks weaken in final session
Stocks have given up earlier gains as US Treasury yields strengthen, noted Chris Beauchamp of IG.
"Yields rose to their highest levels in over two weeks as markets brace for the Federal Reserve's final meeting of the year. The 10-year yield climbed to 4.36%, while the 2-year yield increased to 4.21%, reflecting concerns over sticky inflation," Beauchamp commented Friday
"On Wall Street, stocks opened higher, driven by strong AI-driven optimism, but then began to lose ground. Broadcom surged over 16% following positive quarterly results and a confident outlook on AI opportunities."
1:05pm: Stocks lower across the board
Just after the midday point of trading Friday, the Dow stood at 43,824, down by 0.2%, or 90 points. The S&P 500 was at 6,040, falling 0.2%, a loss of 11 points. Meanwhile, the Nasdaq dropped to 19,859, down 0.2%, or 44 points.
12:26pm: Broadcom reaction
Bank of America analysts have reiterated their 'Buy' rating on Broadcom (AVGO), raising the price target to $250 from $215 due to the company's expanding custom AI opportunities and the potential for significant AI growth.
The firm projects AI sales could grow from $12 billion this year to $30 billion by 2027, with EPS potentially reaching $11-$12, up from their base estimate of $9. This growth is based on Broadcom’s leadership in AI chips and its strong position in networking and other semiconductor areas.
Analysts noted that Broadcom’s AI addressable market (SAM) is expected to grow three to four times in the next three years, with potential resilience in its Apple content.
However, they also pointed out risks, including potential headwinds in AI sentiment, competition from Nvidia (NVDA), and the impact of Broadcom’s historically acquisitive strategy on stock volatility.
Shares of Broadcom were up 20% by midday Friday.
11:33am: Nasdaq falls
Stocks reversed earlier trends, with the S&P and Dow gaining ground as the Nasdaq fell.
The Dow was up 0.1%, at 43,950, driven by strength in industrial and financial sectors.
The S&P 500 was marginally higher, touching opening levels at 6,052, with energy and healthcare stocks balancing declines in technology.
The Nasdaq is down 0.1%, at 19,886, as tech stocks see slight pullbacks following recent gains.
11:01am: Mag 7 valuation tops $18T combined
The Magnificent 7 – Apple Inc (NASDAQ:AAPL, ETR:APC) (Apple Inc (NASDAQ:AAPL, ETR:APC), Apple Inc (NASDAQ:AAPL, ETR:APC)), Microsoft Corp (NASDAQ:MSFT) (Microsoft Corp (NASDAQ:MSFT)), Alphabet Inc (NASDAQ:GOOG) (Alphabet Inc (NASDAQ:GOOG)), Amazon.com Inc (NASDAQ:AMZN) (Amazon.com Inc (NASDAQ:AMZN)), NVIDIA Corp (NASDAQ:NVDA, ETR:NVD) (NVIDIA Corp (NASDAQ:NVDA, ETR:NVD), NVIDIA Corp (NASDAQ:NVDA, ETR:NVD)), Meta Platforms Inc (NASDAQ:META, ETR:FB2A, SWX:FB) (Meta Platforms Inc (NASDAQ:META, ETR:FB2A, SWX:FB), Meta Platforms Inc (NASDAQ:META, ETR:FB2A, SWX:FB), Meta Platforms Inc (NASDAQ:META, ETR:FB2A, SWX:FB)) and Tesla Inc (NASDAQ:TSLA) (Tesla Inc (NASDAQ:TSLA)) – are set to continue outperforming Wall Street in 2025 after their combined valuation topped $18 trillion, according to Dow Jones Market Data.
“The combined market value of the Magnificent Seven now exceeds the annual GDP of every country globally, except for the US and China,” deVere Group CEO Nigel Green noted.
“Their track record of surpassing even the most ambitious projections is unrivaled, cementing their place as the primary drivers of global innovation and wealth creation.”
In the year to date, Apple stock has gained 33.6%, Microsoft 21.2%, Google parent Alphabet 38.9%, Amazon 52.7%, Nvidia 185.2%, Meta 82.2%, and Tesla 68.3%.
9.59am: Markets open higher as Broadcom sparks tech rally
Wall Street got off to a positive start on Friday as stocks recouped from declines seen on Thursday.
The Nasdaq opened 0.7% higher, while the S&P 500 gained 0.4% and Dow Jones moved just above the mark.
Broadcom Inc (NASDAQ:AVGO, ETR:1YD) surged 21.8% on Friday morning, sparking a wider rally among technology companies in the wake of results on Thursday evening.
A profit beat by the chip maker was coupled with bullish commentary around artificial intelligence demand ahead.
“We see an opportunity over the next three years in AI,” chief executive Hock Tan told investors in an earnings call.
“Massive specific hyperscalers have begun their respective journeys to develop their own custom AI accelerators.”
7.05am: Gains seen
Wall Street looked set to recoup some of Thursday’s declines ahead of trading on Friday.
Futures had the Nasdaq jumping 0.7% prior to the opening bell and recovering from a drop on Thursday.
The Dow Jones and S&P 500 were seen 0.2% and 0.3% higher respectively in the meantime after both also fell over the course of Thursday.
Thursday’s news that producer price inflation climbed ahead of expectations in November had weighed on sentiment after an in-line consumer price index reading on Wednesday boosted hopes for a Federal Reserve rate cut next week.
“While the markets still anticipate a rate cut from the Federal Reserve next week, the likelihood of a move in January has dropped to just 20%,” Tickmill Group partner Patrick Munnelly said.
“A major factor influencing the market outlook is US president-elect Donald Trump, who will be back in the Oval Office by the next Fed meeting and may have issued numerous executive orders with significant trade and policy consequences.”