Closing Bell: Markets Rally as Broadcom Highlights Soaring A.I. Demand

Key Points

• Broadening market participation continues to underpin equity strength despite Oracle’s earnings disappointment.
• Broadcom delivers strong results, with AI-related revenue up 74% and guidance signaling sustained chip demand.
• Oil prices ease as supply concerns overshadow geopolitical risks, pressuring names with Venezuelan exposure like Chevron.

Markets recovered from overnight losses as Oracle (ORCL) earnings disappointed expectations but continued broadening in market participation helped support equities. The S&P 500 (SPX) finished up 0.45%, the Nasdaq-100 (NDX) slipped 0.35%, and the Russell 2000 (RUT) outperformed with a 1.21% gain. Materials, Financials, and Industrials led the session, while Communication Services and Information Technology lagged.

Broadcom Earnings Surpass Expectations

Broadcom (AVGO) initially moved higher after reporting results that exceeded analyst estimates across several key metrics. The company posted Q4 revenue of $18.02 billion, ahead of consensus expectations of $17.49 billion. Adjusted EPS came in at $1.95, also beating the $1.86 estimate. AI semiconductor revenue grew 74% year over year, and Q1 guidance indicated continued robust demand for high-performance chips.

Oil Markets Continue to Shrug Off Logistics Risk

WTI Crude fell 0.9% as traders continued to downplay near-term geopolitical risks, focusing instead on concerns around rising global supply. Reuters reported that the U.S. is preparing to seize additional ships transporting Venezuelan oil after a tanker was taken earlier this week. Shares of Chevron (CVX), which maintains oil-producing assets in Venezuela, moved slightly lower, closing down 0.46% on the day.

Key Market Events for Tomorrow

• 08:00 AM ET: FOMC Member Paulson Speaks
• 08:30 AM ET: FOMC Member Hammack Speaks
• 10:35 AM ET: FOMC Member Goolsbee Speaks

Notable Earnings for Tomorrow

• Premarket: RENT
• Postmarket: N/A

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