Broadcom drags on Wall Street as worries about AI weigh

NEW YORK AP More drops for superstar stocks that soared in Wall Street s frenzy around artificial-intelligence innovation are weighing on the U S stock territory Friday The S P slipped from its all-time high set the day before and the weakness for tech stocks dragged the Nasdaq composite down a market-leading But other areas of the area that previously got left behind by Big Tech are picking up particular of the slack and the Dow Jones Industrial Average was adding points or to its own record set the day before as of a m Eastern time Broadcom led the realm lower and fell even though the chip company stated a stronger profit for the latest quarter than analysts expected Analysts called the performance solid and CEO Hock Tan announced strong increase in AI semiconductor revenue helped lead the way But investors may have been concerned with several of Broadcom s financial forecasts including how much profit it can squeeze out of each of revenue The AI heavyweight may also have just run out of momentum after its stock came into the day with a surge of for the year so far more than quadruple the S P s gain Broadcom s stumble came a day after Oracle plunged nearly despite likewise reporting a bigger profit for the latest quarter than analysts expected Doubts remain about whether all the spending that Oracle is doing on AI system will end up being worth it and how it will pay for it Such questions are weighing on the AI industry broadly even as multiple billions of dollars continue to flow in It s a return toward Earth for AI superstars which earlier had been the main engine propelling Wall Street higher Other stocks that used to struggle with uncertainty about the U S commercial sector s strength and what the Federal Reserve will do with interest rates meanwhile are doing better The stocks in the Dow Jones Industrial Average which has much less of an emphasis on tech have been beating other indexes for example Gains of for McDonald s and for Visa were two of the strongest forces lifting the Dow on Friday Now investors are feeling more optimistic about interest rates The Fed earlier this week cut its main interest rate for the third time this year and indicated another cut may be ahead in Wall Street loves lower rates because they can boost the business sector and send prices for investments higher even if they potentially make inflation worse The Fed s chair Jerome Powell did hint on Wednesday that interest rates may be on hold for a while But he helped soothe nerves when his comments appeared less harsh than a few investors expected in shutting off the possibility of more cuts in Stocks of travel-related companies were strong on Friday Oil prices have eased this week which should help trim their bills and hopes are rising that easier interest rates will promotion the commercial sector and encourage more people to take trips Norwegian Cruise Line steamed higher while Southwest Airlines climbed Along with them the majority of stocks within the S P rose The biggest gain in the index came from Lululemon Athletica which jumped after reporting better profit and revenue for the three months through Nov than analysts expected It also explained its CEO Calvin McDonald plans to step down at the end of January following pressure to boost revenue In stock markets abroad indexes were mixed in Europe following a stronger finish in Asia Stocks jumped in Hong Kong and rose in Tokyo for two of the world s bigger gains In the bond arena Treasury yields rose The yield on the -year Treasury climbed to from late Thursday AP Writers Teresa Cerojano and Matt Ott contributed Source