The S&P 500 and the Nasdaq slipped on Friday as Broadcom’s latest results added to concerns about an AI-fueled bubble, dampening optimism stoked by the Federal Reserve’s less-hawkish-than-expected signals on 2026 rate cuts.

Broadcom slid 8.4% after the chipmaker warned of slimmer future margins on its AI system sales, despite projecting strong quarterly revenue. This sharpened worries about the profitability of surging AI investments.

Other chip stocks, such as Advanced Micro Devices lost 1% and a broader chips index fell 1.5% a day after Oracle unveiled a weak forecast.

Shares of the cloud company fell 2.3% after logging their biggest daily drop since January in the previous session.

“Given the fact that ‘Big Tech’ has been at the vanguard of the rally since October 2022, there’s a da

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