In Wall Streethe Nasdaq and the S&P500 They advanced with big technology companies in the lead, while Broadcom reached the podium.
Thus, the index Dow Jones of Industriales ended at 38,647.10 points, losing 0.17%, the S&P500 stood at 5,433.74 points, gaining 0.23% and the Nasdaq Composite It appreciated 0.34%, reaching 17,667.56 points.
PPI data helps rate cut prospects
U.S. producer prices unexpectedly fell in May as The producer price index fell 0.2% last month after advancing an unrevised 0.5% in April.
In the 12 months to May, the PPI rose 2.2% after rising 2.3% in April.
This occurred after Weekly jobless claims data will show the number of Americans filing new claims for jobless benefits jumped to a 10-month high last week, boosting financial market hopes that the Federal Reserve would begin cutting interest rates in September.
Odds of two rate cuts after data now around 70%even as the Federal Reserve on Wednesday signaled just one cut this year, down from an earlier estimate in March of three cuts.
The big technology companies advanced and Bradcom on the podium
Broadcom up more than 12% after chipmaker posts bumper profits and will raise its annual forecasts amid growing demand for AI.
The company also announced a 10-for-1 stock split, as Nvidia recently didin a bid to make its shares more accessible to retail investors.
The chipmaker said its non-AI networking markets, which have been “a fairly big obstacle for the figures, they are no longer a problem”said UBS Investment Banking, while raising the share price target to $1,735, up from $1,610 previously.
Broadcom reported revenue of $3.1 billion from AI products during the second quarter.
The company has seen its shares rise more than 30% so far this year, after almost doubling them in 2023.
Its custom chips unit has also attracted orders from large cloud providers, “Broadcom is widely considered to make custom chips for Alphabet-A and Meta (Facebook).” Revenue from the semiconductor solutions segment, which houses its custom and networking chips, rose about 6% to $7.2 billion in the quarter.
“As the data center market shifts toward AI servers, Broadcom’s advantage is extremely high. In many ways the tech will be the second-biggest beneficiary of this shift, after Nvidia,” said Ben Bajarin, analyst. from Creative Strategies.
Elon Musk gets a $56 billion pay package
The actions of tesla gained 3% after CEO Elon Musk said in a social media post that Shareholders back his $56 billion pay package and the electric vehicle giant’s decision to rejoin Texas from Delaware.
“In our opinion, “This eliminates a $20 to $25 surplus on stocks that has weighed on us since the painful Delaware ruling that started this soap opera earlier this year,” said analysts at Wedbush Securities Inc.
Besides, Dave & Buster’s Entertainment shares fell more than 12%, their biggest one-day drop since 2022, after the company’s first-quarter revenue missed estimates.
GameStop Corp rose 15% as the video game retailer kicked off its annual shareholder meeting.
