Markets End Mixed as Fed Meeting and AI Trends Shape Investor Sentiment

Tech gains buoy Nasdaq while broader market struggles; upcoming Fed rate decision adds uncertainty.

The Nasdaq outperformed other indices this week, rising 0.3%, while the S&P 500 and Dow Jones saw declines of 0.6% and 1.8%, respectively.
Broadcom surged over 24% on strong AI-related earnings and an optimistic outlook, contrasting with Nvidia, which fell 5.75% due to growing competition from in-house AI chip development by major clients.
The Federal Reserve's final meeting of 2024, set for December 17-18, is widely expected to result in a quarter-point rate cut, marking the fourth cut this year as inflation remains sticky.
Market breadth has weakened, with more decliners than gainers in the S&P 500 for 10 consecutive sessions, the longest streak since 2001.
Rising Treasury yields, up 25 basis points to 4.4%, and mixed economic signals, including a slight uptick in consumer inflation to 2.7%, have contributed to market volatility.