US stock futures steady as rate cut bets persist; Broadcom soars on upbeat outlook

U.S. stock index futures steadied on Thursday evening as investors awaited a Federal Reserve meeting next week where the central bank is widely expected to cut interest rates. 

Broadcom Inc (NASDAQ:AVGO ) was a standout performer, rising sharply after the chipmaker posted stronger-than-expected guidance for the current quarter.

Stock futures steadied after a negative session on Wall Street, as stronger-than-expected producer price index data sparked uncertainty over the long-term outlook for rates. 

S&P 500 Futures were flat at 6,062.75 points, while Nasdaq 100 Futures 4 rose 0.3% to 21,723.50 points by 18:13 ET (23:13 GMT). Dow Jones Futures fell 0.1% to 43,936.0 points. Broadcom hits record high on AI-fueled guidance 

Broadcom’s shares jumped 15.8% in aftermarket trade to an indicated record high of $209.10. 

Gains in the stock came after it forecast higher-than-expected revenue for the current quarter, citing increased chip demand from growing interest in artificial intelligence. 

The upbeat forecast and optimistic comments from executives during the earnings call saw investors largely look past softer-than-expected quarterly revenue. But Broadcom’s earnings per share beat estimates. 

Broadcom is trading up over 60% for 2024, having benefited greatly from increased AI-fueled demand for its network equipment, which plays a crucial role in setting up infrastructure for the industry. 

Gains in Broadcom spilled over into other chipmakers, helping them recover a measure of Thursday’s losses. NVIDIA Corporation (NASDAQ:NVDA ) rose 1.1%, while AMD (NASDAQ:AMD ) added 0.7%. Wall St dips as PPI data spurs uncertainty over long-term rates 

Wall Street indexes fell on Thursday after stronger-than-expected producer price index inflation data sparked increased uncertainty over the long-term outlook for rates. 

Investors also locked in some recent profits, pulling Wall Street indexes off record highs before a Fed meeting next week. This was especially apparent in technology shares, which saw a strong run-up in recent weeks.

While the Fed is widely expected to cut rates by 25 basis points next week, sticky PPI and consumer inflation data released this week spurred fears that the central bank will adopt a slower pace of cuts in 2025. 

The S&P 500 fell 0.5% to 6,051.25 points, while the NASDAQ Composite fell 0.7% to 19,905.19 points. The Dow Jones Industrial Average fell 0.5% to 43,914.12 points. 

 

Source: Investing.com