"Leading the markets, Broadcom ( NASDAQ: AVGO) posted strong earnings and gave a strong forecast. Unfortunately, the stock is down about 6% in premarket "after the chipmaker warned growing sales of lower-margin custom AI processors were squeezing profitability, sparking worries that the business may be less lucrative," as noted by Reuters. "The warning on margin impact deepened investor jitters over Big Tech's AI returns, a day after Oracle fell 10.8%.""
"Just days after the Federal Reserve cut interest rates by another quarter point, Philadelphia Federal Reserve President Anna Paulson says unemployment is a bigger economic threat than inflation, which could open the door for more interest rate cuts in the new year. "That's partly because I see a decent chance that inflation will come down as we go through next year," the central banker said, as quoted by CNBC. If that's the case, investors may want to keep an eye on more upside in gold prices."
U.S. futures display mixed signals with Dow futures up while S&P 500 and Nasdaq futures lag. Broadcom posted strong results but warned that rising sales of lower-margin custom AI processors are squeezing profitability, prompting investor concern about AI-related margins. Lululemon shares jumped after an announcement that the CEO will step down at the end of January 2026 despite a modest company forecast. Philadelphia Fed President Anna Paulson emphasized unemployment as a larger risk than inflation, suggesting the possibility of additional rate cuts. Rising rate-cut expectations and inflation easing forecasts have pushed renewed interest in gold, bullion, miners, and related ETFs.
Read at 24/7 Wall St.
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