Broadcom Shares Rebound 1.7%-3.7% Premarket as Futures Climb
AVGO•Broadcom shares rebounded between 1.7% and 3.7% in premarket trading as S&P 500 E-minis rose 0.34% and Nasdaq 100 E-minis gained 0.7% following a two-week sector selloff. Renewed Middle East hostilities sent crude oil above $95 a barrel, reinforcing concerns over input costs and Fed rate paths.
1. Market Rally Supports Broadcom
Broadcom shares recovered sharply in early trading after last week’s steep selloff erased over $1 trillion in chipmaker market value. S&P 500 E-minis climbed 0.34% and Nasdaq 100 E-minis jumped 0.7%, signaling renewed risk appetite in technology names that led premarket gains for Broadcom.
2. Middle East Tensions and Oil Prices
Heightened conflict risks in the Middle East propelled Brent crude past $95 per barrel, rekindling concerns about higher energy costs for chip fabrication and logistics. Broader market reaction to oil’s surge also weighed on airline and industrial stocks, underscoring cross-sector impacts on semiconductor supply chains.
3. Monetary Policy Outlook
Investors remain alert to Federal Reserve policy, with futures implying a 42% chance of a December rate hike and Goldman Sachs forecasting no cuts until 2027. Citigroup’s bullish end-2026 S&P 500 target of 8,000 reflects confidence in earnings resilience and AI-driven growth that support the semiconductor outlook.
