FX.co ★ US Stocks Post Sharp Losses at Week's End

U.S. stock markets experienced a significant downturn on Friday, largely driven by a Broadcom-led decline that prompted investors to shift towards cyclical and defensive stocks. The S&P 500 decreased by 1%, while the Dow Jones Industrial Average slipped 0.4% after reaching record peaks. The Nasdaq Composite faced a sharper decline, falling 1.8%. This was primarily due to Broadcom's stock plummeting 11.4% following its cautionary statement regarding profit margins. Similarly, major companies involved in AI and semiconductors faced notable losses—Nvidia dropped by 3.3%, Oracle by 4.5%, Palantir by 2.1%, AMD by 4.8%, and Micron by 6.7%. These declines mark a notable downturn in the sector, reflecting increased apprehension about margins and AI-related stocks, despite the Federal Reserve's recent interest rate cuts that sustain overall market sentiment. Meanwhile, the Federal Reserve's Cleveland President indicated a preference for slightly tighter monetary policy to control inflation. In contrast, Lululemon outperformed expectations, rising 9.6% after it updated its annual forecast and announced a change in its CEO position. Over the week, the S&P 500 declined by 0.5%, while the Dow gained 1.2%, and the Nasdaq saw a 1.9% reduction.