Yahoo Finance Stocks - Wall Street Mixed as Broadcom Predicts Slowing Growth
Investing.com – Wall Street was mixed on Friday as gloomy predictions from Broadcom (NASDAQ:AVGO) weighed on the Nasdaq.
The Dow lost 60 points, or 0.2%, by 9:49 AM ET (13:49 GMT), while the S&P 500 rose 4 points, or 0.2%, and the tech-heavy Nasdaq composite slumped 42 points, or 0.5%.
Broadcom slumped 6.9% after forecasting a slowdown in demand for chips, citing the trade war between the U.S. and China. Most chipmakers have been predicting a stronger second half to the year after a weak first half and Broadcom's warning damages one of the biggest props to sentiment for the sector.
"Broadcom is definitely leading markets lower and that might drive other chips lower as well. Some of it is also about the U.S.-China trade war and the fight over Huawei," said Kim Forrest, chief investment officer at Bokeh Capital Partners.
China’s industrial output growth slowed to its slowest rate in more than 17 years in May, as the world's second-largest economy showed signs of weakening under U.S. trade pressure.
Chipmakers fell, with Advanced Micro Devices (NASDAQ:AMD) losing 2.8%, Nvidia (NASDAQ:NVDA) slumping 3.1% and Intel (NASDAQ:INTC) slipping 1.7%.
Tesla (NASDAQ:TSLA) inched down 0.6% after the electric car company lost its autopilot head Zeljko Popovic to Embark, a self-driving trucking startup, while Blue Apron (NYSE:APRN) slumped 10.3% due to a planned 1-to-15 reverse stock split.
In commodities, crude inched up 0.2% to $52.38 a barrel, gold futures rose 0.8% to $1,355.05 a troy ounce, while the U.S. dollar index, which measures the greenback against a basket of six major currencies, gained 0.3% to 97.282.
-- Reuters contributed to this report.
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