U.S. Stock Futures Steady Before Fed Meeting

U.S. stock index futures stabilized on Thursday evening as investors prepared for a Federal Reserve meeting next week, where a cut in interest rates is anticipated.

Broadcom Inc's Performance
Broadcom Inc (NASDAQ:AVGO) stood out, rising sharply after providing stronger-than-expected guidance for the current quarter.

Despite a negative session on Wall Street, stock futures found stability, influenced by unexpectedly strong producer price index data, creating uncertainty about long-term rates.

• S&P 500 Futures remained flat at 6,062.75 points.
• Nasdaq 100 Futures rose 0.3% to 21,723.50 points (by 18:13 ET or 23:13 GMT).
• Dow Jones Futures slipped 0.1% to 43,936.0 points.

Broadcom Hits Record High on AI-Fueled Guidance

Broadcom’s shares skyrocketed 15.8% in aftermarket trading, reaching an indicative record high of $209.10. The surge followed a forecast for higher-than-expected revenue driven by increasing chip demand due to the rise of artificial intelligence.

Optimistic comments from executives during the earnings call helped investors overlook softer quarterly revenue. However, Broadcom exceeded earnings per share estimates.

With over a 60% increase in 2024, Broadcom has notably benefitted from AI-driven demand for its essential network equipment, integral for establishing infrastructure in the sector.

Broadcom’s gains positively impacted other chipmakers, allowing them to recover some losses from Thursday. NVIDIA Corporation (NASDAQ:NVDA) rose 1.1%, while AMD (NASDAQ:AMD) added 0.7%.

Wall Street Dips Amidst PPI Data Uncertainty

Wall Street indexes fell on Thursday following stronger-than-expected producer price index (PPI) inflation data, which created greater uncertainty concerning long-term interest rates.

Additionally, investors took profits from recent highs in an evident pullback before the Fed meeting next week, particularly impacting technology shares that had seen a strong performance recently.

While the Federal Reserve is expected to reduce rates by 25 basis points next week, the persistent PPI and consumer inflation data released this week raised concerns that the central bank might implement a slower pace of cuts in 2025.

• The S&P 500 dropped 0.5% to 6,051.25 points.
• The NASDAQ Composite declined 0.7% to 19,905.19 points.
• The Dow Jones Industrial Average decreased 0.5% to 43,914.12 points.