U.S. stocks turned lower in late-morning trading Friday as megagap tech names gave back earlier gains tied to the AI investment demand story amid a sharp move higher in Treasury bond yields.
Updated at 11:16 AM EST
Friday red
The S&P 500 is now negative on the day, and last marked 11 points lower, or 0.18%, from last night's close.
The Nasdaq, meanwhile, fell 70 points, or 0.36% and the Dow slipped 6 points into the red
Updated at 10:40 AM EST
Bond stumble
Benchmark 10-year Treasury note yields rose past 3-month Treasury bill yields for the first time in more than two years in early trading as bond markets continue to selloff heading into next week's Fed meeting.
The paper was last seen trading at 4.373%, up 4 basis points from earlier levels and around 21 basis higher from last week's close. At the lower end of the curve, 3-month bills were last trading at 4.328%
Updated at 9:32 AM EST
Solid open
The S&P 500 was marked 18 points, or 0.3% higher in the opening minutes of trading, with the Nasdaq rising 111 points, or 0.5%
The Dow was marked 50 points higher and the mid-cap Russell 2000 slipped 4 points, or 0.17%
Updated at 9:11 AM EST
Broadcom bulls
Broadcom shares are set to open at a fresh all-time high following a host of price target updates from Wall Street analysts tied to its better-than-expected fourth quarter earnings and bullish near-term outlook.
"We are on track for volume shipment at our hyperscale customers in the second half of fiscal 2025," CEO Hock Tan told investors on a conference call last night.
Broadcom shares were marked 18.37% higher in premarket trading to indicate an opening bell price of $213.85 each.
Stocks ended lower across the board Thursday, with the Nasdaq leading the broader market decline. Investors parsed details of a mixed producer price inflation report and a big jump in weekly jobless claims.
A tepid auction of 30-year bonds, meanwhile, accelerated the year's biggest weekly move higher in long-dated paper, as investors appear to be growing increasingly concerned over the trajectory of U.S. debt levels.
Benchmark 10-year notes were last trading at 4.334%, a 13-basis-point [0.13 percentage point] increase on the week, with 2-year notes rising to 4.201%. The market move came even as bets on a December rate cut were effectively cemented by the twin inflation reports this week.
Bond markets are navigating a complex backdrop of growth, inflation and deficit figures into year-end, with longer-dated yields rising the most in a year this week.
Investors are also growing concerned about the lack of market breadth into the final weeks of the year. The number of advancing stocks is being outpaced by the number of those in decline for a ninth consecutive session, one of the longest such streaks in two decades.
Tech stocks are back in the driver's seat again Friday, however, after a stronger-than-expected quarterly report from chipmaker Broadcom (AVGO) appeared to have added further heft to the AI-investment trade.
Futures contracts tied to the Nasdaq suggest a 150-point opening-bell gain, with premarket advances for Nvidia (NVDA) , Tesla (TSLA) and Advanced Micro Devices (AMD) .
The S&P 500, meanwhile, is called 22 points higher while the Dow Jones Industrial Average is priced to claw back around 100 points from last night's slump.
In overseas markets, Britain's FTSE 100 was little changed in midday London trading after data showed the domestic economy had contracted for a second consecutive month. The report prompted traders to add to bets on an end-of-year rate cut from the Bank of England.
Overnight in Asia, the Nikkei 225 fell 0.95% into the close, following on from last night's pullback on Wall Street but held onto a 1.94% gain for the week.
A lack of policy and stimulus detail from the Central Economic Work Conference, meanwhile, pulled China stocks into the red, with the Hang Seng index falling 2.1% and the regional MSCI ex-Japan benchmark down 0.57% into the close of trading.
