Key Takeaways
- The S&P 500 finished flat on Friday, Dec. 13, 2024, as attention shifted toward next week’s Federal Reserve decision on interest rates.
- Broadcom shares soared after the chipmaker topped sales and profit forecasts as AI sales surged.
- Shares of server maker Super Micro Computer fell as concerns intensified around the possible removal of the stock from the Nasdaq 100.
Major U.S. equities indexes were mixed and little changed to wrap up a trading week that delivered several key economic data points. Despite indications of sticky inflation, traders widely expect another interest-rate cut when the Federal Reserve convenes next week for its final policy meeting of 2024.
The S&P 500 was flat to finish Friday’s session, while the Dow slipped 0.2%, and the Nasdaq edged 0.1% higher.
Broadcom (AVGO) shares skyrocketed 24.4% to an all-time high, lifting the company’s market capitalization above the $1 trillion level after the chipmaker beat revenue and profit estimates with its fiscal fourth-quarter results. The company said its artificial intelligence (AI) sales in fiscal 2024 more than tripled year-over-year, and several analysts raised their price targets on the stock, citing its AI revenue growth. Friday’s gains made Broadcom the top daily performer in the S&P 500.
Shares of Lamb Weston (LW), a producer of frozen French fries and other potato products, jumped 6.8% following reports of buyout talks with Post Holdings (POST), the packaged goods giant known for its breakfast cereals. Lamb Weston has reportedly faced pressure from an activist investor to explore options for selling the company.
Walgreens Boots Alliance (WBA) shares also added 6.8%. The stock had surged earlier in the week following reports the drugstore operator is evaluating a possible sale to private equity firm Sycamore Partners, but the shares returned some of those gains before regaining momentum on Friday.
Arista Networks (ANET) shares climbed 5.1% to an all-time high. Citi analysts suggested the networking equipment provider could be a key beneficiary of the boom in AI demand, pointing to demand for data center switches. Arista recently completed a 4-for-1 stock split on Dec. 4.
Nucor (NUE) shares sank nearly 4.7%, extending losses posted in the prior session after UBS downgraded the steelmaker’s stock to “neutral” from “buy.” Expectations for protective trade policies under the incoming administration helped drive a rally in steel stocks following the U.S. presidential election, and analysts pointed to a less favorable risk/reward profile following those gains.
Shares of server maker Super Micro Computer (SMCI) fell 3.9%. The move lower came as concerns intensified around the possible removal of the stock from the Nasdaq 100. Supermicro shares have been volatile since the company delayed its annual regulatory filing amid questions about its accounting practices and the resignation of its auditing firm.
