Nasdaq 100: Tech Stocks Rally as Broadcom, Nvidia Lead Semiconductor Gains

Stock Futures Rise as Dow Eyes a Rebound from Six-Day Losing Streak

Stock futures climbed early Friday, with the Dow Jones Industrial Average attempting to end its longest losing streak since April. Earnings beats, sector upgrades, and surging artificial intelligence revenue are boosting market sentiment, even as inflation data sparks concerns.

Tech-Led Nasdaq Sees Resilience Despite Broader Losses

Futures tied to the Dow rose 0.07%, while the S&P 500 and Nasdaq-100 advanced 0.36% and 0.82%, respectively. Thursday’s session saw the Dow fall 234 points (0.5%) for a sixth straight day, while the Nasdaq slipped 0.7%, breaking below the 20,000 level as Nvidia and other tech names struggled. For the week, the Dow is set for a 1.6% loss, with the S&P 500 likely to drop 0.6%. The Nasdaq, buoyed by tech strength earlier in the week, remains on track for a modest 0.2% gain.

Broadcom’s AI Gains Lead Semiconductors Higher

Broadcom surged 17% in premarket trading after exceeding fiscal fourth-quarter earnings expectations. AI-related revenue skyrocketed 220% year-over-year, a key driver of the stock’s performance. Following Broadcom’s lead, Nvidia, Micron, and AMD all posted gains, underscoring the market’s focus on AI as a growth catalyst for the semiconductor sector.

Economic Data Sparks Inflation Concerns

The Producer Price Index for November revealed a 0.4% increase in wholesale prices, outpacing expectations of 0.2%. The stronger-than-expected reading highlights lingering inflationary pressures, raising questions about the Federal Reserve’s next steps. However, optimism about a potential year-end rally persists, with some analysts projecting further market upside.

Upgrades and Earnings Propel Key Stocks Higher

A flurry of earnings beats and analyst upgrades drove notable premarket moves. RH shares climbed 13% after raising forward guidance, citing an “acceleration of demand.” Norwegian Cruise Line gained 2.6% following an upgrade by Barclays, while Penn Entertainment jumped 5.8% on JPMorgan’s upgrade to overweight. TaskUs (+6.8%), Tesla (+1%), and PayPal (+1.8%) also advanced, supported by positive news and market outlooks.

Market Forecast: Where Could the Market Be Headed Next?

The market’s short-term direction appears cautiously bullish, supported by sectoral strength in AI and consumer discretionary stocks. However, elevated valuations and inflationary pressures may limit upside in broader indexes.

Traders should remain focused on economic data and corporate earnings to gauge momentum. With technology and consumer discretionary sectors continuing to show leadership, a year-end rally remains possible, but risks of volatility persist.

More Information in our Economic Calendar.