Wall Street looks set to open higher this Friday, with futures gaining support from positive guidance by chipmaker Broadcom. Alongside this, the dollar continues to show strength, Elon Musk finds himself under further scrutiny by the SEC, and oil prices edge upward to close the week on a positive note.
Dollar Shows Resilience
The dollar remains a focal point as it heads for its best week in a month. Stronger-than-expected U.S. producer price data suggests inflationary pressures may persist, tempering expectations for aggressive Federal Reserve rate cuts in 2025. At 03:50 ET, the Dollar Index rose 0.2% to 106.87, up over 1% for the week. The cautious approach by the Fed contrasts with multiple recent rate cuts from other global central banks, including a 50-basis-point reduction in Canada and Switzerland and a 25-basis-point cut by the European Central Bank.
Futures Gain Ground; Broadcom Leads the Charge
By 03:50 ET:
- Dow futures: Up 90 points (+0.2%)
- S&P 500 futures: Up 14 points (+0.2%)
- Nasdaq 100 futures: Up 115 points (+0.5%)
The Nasdaq Composite rose 0.2% for the week, buoyed by Broadcom’s stellar earnings report, which highlighted record semiconductor revenue driven by AI demand. Meanwhile, the Dow and S&P 500 faced weekly declines of 1.6% and 0.6%, respectively, as inflation concerns linger.
Broadcom Shines with AI Growth
Broadcom stock surged in premarket trading after forecasting stronger-than-expected revenue for the upcoming quarter. CEO Hock Tan cited AI as a key driver, with semiconductor revenue hitting $30.1 billion, boosted by $12.2 billion from AI-related products. This marks a 220% year-over-year growth in AI revenue. Broadcom’s network equipment continues to play a critical role in building the infrastructure powering AI, solidifying its position as a leader in the tech sector.
Elon Musk and the SEC Clash Again
Elon Musk faces additional SEC scrutiny over his brain-computer interface company Neuralink. A recently disclosed letter suggests the SEC is investigating numerous counts, demanding settlement within 48 hours or facing charges. Musk’s tumultuous relationship with the SEC includes a $20 million fine in 2018 and ongoing probes into Tesla’s self-driving claims and his Twitter acquisition.
Oil Markets Eye Supply Disruptions
Oil prices continue to climb, heading for their first weekly gain since November’s end.
- WTI crude: Up 0.2%, trading at $70.18 per barrel.
- Brent crude: Up 0.2%, trading at $73.55 per barrel.
Concerns about tighter U.S. sanctions on Iran and Russia have fueled supply fears, overshadowing OPEC’s downward revisions for demand growth in 2024 and 2025.
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