Technology stocks led US futures higher on Friday morning as Broadcom (AVGO) surged higher after the chipmaker forecast an AI-powered sales surge. Futures tied to the S&P 500 (ES=F) rose 0.4%, while those on the tech-heavy Nasdaq (NQ=F) rose 0.7%. Dow Jones Industrial Average futures (YM=F) rose a more modest 0.1%.
Broadcom’s bullish forecast helped lighten the mood. Shares rose more than 17% in premarket trading after executives forecast AI sales gains of about 65%, a much faster pace than expected.
Broadcom’s industry peers gathered together. Marvell Technology (MRVL) rose more than 5%, while AMD (AMD) and chip giant Nvidia (NVDA) rose more modestly.
These moves position the Nasdaq for strong weekly gains as the index closed at a record high on Wednesday, finishing above the 20,000 milestone for the first time.
While technology has led the way this week, the Dow Jones has struggled, partly due to a continued decline in UnitedHealth (UNH) shares as the insurance industry continues to grapple with the fallout from the fatal shooting of UnitedHealthcare’s CEO. Shares of UnitedHealth fell more than 15% in the week after the shooting.
Meanwhile, the latest economic data has suggested another rate cut from the Federal Reserve next week. But continued stubborn inflation could force the Fed to move more slowly next year.
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