More drops for superstar stocks that soared in Wall Street’s frenzy around artificial-intelligence technology are weighing on the U.S. stock market. The S&P 500 slipped 0.5% Friday from its all-time high set the day before, while weakness for Broadcom and other tech stocks dragged the Nasdaq comp.
— More drops for superstar stocks that soared in Wall Street’s frenzy around artificial-intelligence technology are weighing on the U.S. stock market Friday.
The S&P 500 slipped 0.5% from its all-time high set the day before, and the weakness for tech stocks dragged the Nasdaq composite down a market-leading 1%.
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But other areas of the market that previously got left behind by Big Tech are picking up some of the slack, and the Dow Jones Industrial Average was adding 90 points, or 0.2%, to its own record set the day before, as of 10:45 a.m. Eastern time.
Broadcom led the market lower and fell 10.2% even though the chip company reported a stronger profit for the latest quarter than analysts expected. Analysts called the performance solid, and CEO Hock Tan said strong 74% growth in AI semiconductor revenue helped lead the way.
But investors may have been concerned with some of Broadcom’s financial forecasts, including how much profit it can squeeze out of each $1 of revenue. The AI heavyweight may also have simply run out of momentum after its stock came into the day with a surge of 75.
