Stock market today: Nasdaq leads US futures higher as Broadcom surges
Tech stocks led US futures higher Friday morning, as Broadcom (AVGO) surged higher after the chipmaker predicted an AI driven sales surge. Futures tied to the S&P 500 (ES=F) were up 0.4%, while those on the tech-heavy Nasdaq (NQ=F) rose 0.7%. Dow Jones Industrial Average futures (YM=F) were up a more modest 0.1%.
Broadcom's bullish forecast helped brighten the mood. Shares were up over 17% in premarket trading after executives predicted an AI sales gain of around 65%, a much brisker pace than expected.
Broadcom's peers rallied in tandem. Marvell Technology (MRVL) was up over 5%, while AMD (AMD) and chip titan Nvidia (NVDA) rose more modestly.
The moves position the Nasdaq for a strong weekly gain, as the index had notched a record close on Wednesday while finishing above the milestone level of 20,000 for the first time.
While tech has led the way this week, the Dow has struggled, partly on the back of a continued plunge in UnitedHealth (UNH) shares as the insurance industry continues to grapple with the fallout of the UnitedHealthcare CEO's fatal shooting. UnitedHealth shares are down over 15% in the week since the shooting.
Meanwhile, the last pieces of economic data have teed up another rate cut from the Federal Reserve next week. But persistently sticky inflation could force the Fed to tread more slowly next year.
