Overnight, the US stock market closed with mixed gains and losses. The Dow Jones Industrial Average fell 0.20%, marking its seventh consecutive trading day of decline. The Nasdaq rose 0.12%, while the S&P 500 index closed flat. This week, the Dow Jones Industrial Average has fallen by 1.82%, the S&P 500 Index has fallen by 0.64%, and the Nasdaq has risen by 0.34%. The market focus is on next week's Federal Reserve meeting.
After the release of its financial report, Broadcom's stock price surged by over 24%, and its market value exceeded the $1 trillion mark for the first time. Broadcom's AI revenue has grown by 220% to $12.2 billion this year, and it is expected that AI product revenue will increase by 65% year-on-year in the first quarter of fiscal year 2025.
Maiweier Technology rose nearly 11%, with its stock price reaching a historic high, as its major competitor Broadcom released an optimistic revenue forecast.
TSMC rose 5%. According to industry insiders, TSMC is committed to integrating CoWoS and SiPh and seeking to launch co packaged optical devices (CPO) by 2026. In addition, Apple has partnered with Broadcom to develop AI chips, and TSMC's advanced processes will receive another large order. According to media reports, Apple is developing a server chip specifically designed for AI and is collaborating with Broadcom to develop the network technology for this chip. It is reported that the internal code name of the new chip is Baltra, and it is expected to be mass-produced by 2026.
Tesla rose over 4%, continuing to reach a historic high. It was reported that Trump's transition team proposed to repeal the current general order requiring automobile manufacturers to report accidents related to the auto drive system.
The Nasdaq China Golden Dragon Index closed down 1.13%, with a cumulative increase of 2.07% this week. Most popular Chinese concept stocks fell, with Xiaopeng Motors dropping over 3%, Ideal Auto, Pinduoduo, Bilibili, and JD.com falling over 2%, and Alibaba and NIO falling over 1%. In terms of gains, Tiger Securities rose over 9%, while Futu Holdings rose over 1%.
The Federal Reserve will hold its final monetary policy meeting of the year on December 17-18. Swap market pricing shows that traders believe there is a 95% probability that the Federal Reserve will cut interest rates by 25 basis points at its December meeting.
The minutes of the November monetary policy meeting of the Federal Open Market Committee (FOMC) in the United States show that Federal Reserve officials believe that if the economic performance meets expectations, gradually cutting interest rates and shifting towards a more neutral policy stance may be appropriate.
Economists surveyed predict that the Federal Reserve will cut interest rates for the third consecutive time this month and lower their expectations for the number of rate cuts next year. The market expects Federal Reserve Chairman Powell and his colleagues to cut interest rates by 25 basis points next week, which, if true, would mean a cumulative 1 percentage point reduction in interest rates since September.