Broadcom Shares Slide as Chip Sector Drags Nasdaq Down 0.9%
Broadcom shares declined as the chip sector slid, contributing to the Nasdaq’s 0.9% drop and S&P 500’s 0.5% fall following OpenAI missing internal weekly user and revenue targets, sparking AI investment concerns. The Federal Reserve is set to hold rates at its final policy meeting under Chair Jerome Powell.
1. Broadcom Shares Fall on AI Growth Worries
Shares of Broadcom slipped alongside Nvidia and AMD as the tech-heavy Nasdaq Composite dropped 0.9% and the S&P 500 fell 0.5%. Investors reacted to OpenAI missing weekly user and revenue targets, heightening doubts about future AI data center demand and hyperscaler capex.
2. Fed Holds Rates with Eye on Inflation and Oil
The Federal Reserve convened its likely final meeting under Chair Jerome Powell and is expected to leave the benchmark rate unchanged. Market participants will parse the policy statement and press conference for guidance on inflationary pressures and the impact of a 2.5% jump in oil prices on corporate costs.