Broadcom stock fell 27% from its 52-week high of $495 despite strong Q3 2026 results showing 86% revenue growth to $29.6 billion and 221% growth in its AI chip business. The post-earnings decline was driven by slightly below-consensus Q4 revenue guidance of $34.8 billion, though the company's fundamentals remain robust with 95% free cash flow growth.
US stock futures rose Friday as investors assessed sticky inflation data showing prices up 0.4% monthly and 3.4% annually, fueling bets the Federal Reserve will hike rates next week. The three major indexes extended a four-day losing streak and faced weekly declines, while rising oil prices and Treasury yields pushed rate-hike probability to 72%.
US stocks declined Wednesday as oil prices surpassed $100 per barrel following escalated US-Iran tensions, with the Dow and Nasdaq each falling 0.5% and traders increasing bets on a Fed rate hike amid inflation concerns.
The S&P 500 and Nasdaq have gained 13-14% year-to-date, driven by strong earnings in AI-related technology stocks. The market's valuation metrics have reached levels last seen during the dot-com bubble, with the S&P 500's CAPE ratio exceeding 40 for five consecutive months. However, AI adoption is advancing faster than the internet did, potentially distinguishing this boom from the speculative bubble of 2000.