Wall Street's Balancing Act: Tech Stocks Leverage AI Boom Amid Yield Challenges

Wall Street's key indexes dipped on Friday as investor sentiment was hindered by rising government bond yields. However, Broadcom's positive revenue forecast, driven by AI demand, buoyed tech stocks. Despite bond yields causing volatility, tech's progress propelled Nasdaq to new heights amid expectations of a Fed interest rate cut.

Wall Street saw a downturn on Friday as soaring government bond yields dampened investor sentiments, despite Broadcom's optimistic AI-driven revenue forecast that energized technology stocks. Broadcom's shares surged nearly 20%, marking its market capitalization breach of $1 trillion for the first time.

Mixed reactions were observed in chip stocks; Broadcom's competitor Marvell Technology rose by 9.4%, while Nvidia's shares fell by 2.5%. Meanwhile, the benchmark 10-year bond yield rose to a three-week high, impacting investor strategies.

Regardless, technology stocks' ascent pushed the Nasdaq above 20,000 for the first time, supported by an in-line inflation report fanning expectations of a 25 basis-point interest rate cut from the Federal Reserve's upcoming meeting.

(With inputs from agencies.)