Today’s Market: S&P 500 Falls 1%, Nasdaq Slides 2% as Broadcom Lead Tech Stocks Down

This article first appeared on GuruFocus.

Wall Street’s major indexes were mixed on Friday as chipmaker Broadcom (NASDAQ:AVGO) rattled investors with cautious guidance, pressuring AI-focused stocks.

The Nasdaq Composite fell about 2%, while the S&P 500 slipped roughly 1%. The Dow Jones Industrial Average (DJI) edged up 0.1%, reaching a new high of 48,886.86 points.

Broadcom (NASDAQ:AVGO) shares slid 10% after reporting weaker-than-expected AI product backlogs and potential margin pressures.

Other technology names leading declines included Micron Technology (MU), Applovin (NASDAQ:APP), Palantir (NASDAQ:PLTR), and Advanced Micro Devices (NASDAQ:AMD).

Mega-cap growth stocks have led for years, but 2026 may see a shift toward dividend growers, industrials, and value sectors, said Robert Edwards, CIO at Edwards Asset Management.

In economic news, Chicago Fed President Austan Goolsbee suggested waiting for more data before cutting rates, while Cleveland Fed President…