Broadcom warning pulls Wall St. down, chip stocks hurt

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Broadcom warning pulls Wall St. down, chip stocks hurt

On Friday, the 14th of June 2019, all three key indexes of Wall St. had wrapped up the day in the reds, while Nasdaq took most of the tumbles after Broadcom, a US chipmaker, had unveiled a $2 billion in losses during its earnings report due to Trump’s Huawei ban.

Aside from that, investors appeared to be cautious throughout the day, as next week’s Federal Reserve meeting could alter the landscape of Wall St. amid a tempestuous trade relation between US and China alongside a slowing global economy casting shadows over global demand, though no rate cuts were expected this week Shares of Broadcom Inc.

slid as much as 5.6 percent after it had slashed its full-year revenue forecast by $2 billion, blaming a sharp dwindle in demands following escalation of US-China trade spat and Huawei ban, while other chip suppliers had also ended the day broadly lower.

None the less, Friday’s (June 14th) fall was eased slightly over hopes of at least two rate cut bet this year. Adding that market would be trading pins and needles until a Fed signal on rate cut, a director of trading at Performance Trust Capital Partners in Chicago, Brain Battle said, “Everybody is betting that the Fed is going to cut rates, probably not in June but soon.

That is a very crowded trade”. Quoting Wall St. statistics, at Friday’s (June 14th) market wind down, Dow fell 0.07 percent to 26,089.61 and S&P shed 0.16 percent, while Nasdaq was nudged 0.52 percent lower to 7,796.66 following Broadcom’s warning on Huawei ban.