Equity Markets Fall Intraday as Broadcom Weighs on Tech Sector

02:12 PM EST, 12/12/2025 (MT Newswires) -- US benchmark equity indexes were lower intraday as the technology sector tumbled amid a post-earnings selloff in Broadcom (AVGO) , while markets parsed remarks by Federal Reserve officials.

The Nasdaq Composite was down 1.2% at 23,304.7 after midday Friday, while the S&P 500 fell 0.8% to 6,847.5. The Dow Jones Industrial Average lost 0.3% to 48,557.4. On Thursday, the Dow and the S&P 500 closed at record highs.

Among sectors, tech slid 2.1% intraday Friday, the steepest decline, while consumer staples paced the gainers.

In company news, Broadcom (AVGO) shares sank nearly 11%, the second-steepest drop on the S&P 500.

The chipmaker will likely see gross margin pressures in the ongoing fiscal year amid an increase in new artificial intelligence orders, though its earnings growth should be "more important" for investors, Truist Securities said in a note.

Late Thursday, Broadcom (AVGO) reported fiscal fourth-quarter financial results that exceeded Wall Street's estimates as the company saw strong demand for its AI chips.

The results show that "as AI becomes a bigger part of sales, margins can dip, at least temporarily," Saxo Bank said in a Friday report. "That is why the market flinches even on a strong print."

Chipmaking giant Nvidia (NVDA) was down 2% intraday, the second-worst Dow performer, while Microsoft (MSFT) , Amazon.com (AMZN) , and Cisco Systems (CSCO) were among the steepest decliners on the index.

Lululemon Athletica (LULU) shares jumped 10%, the best performer on the S&P 500. The athletic apparel and footwear retailer late Thursday raised its full-year outlook on the back of better-than-expected fiscal third-quarter sales, while the company announced Calvin McDonald will step down as chief executive next year.

Shares of cannabis companies surged Friday following reports that US President Donald Trump was seeking to ease restrictions on marijuana by reclassifying it as a less dangerous drug.

Canopy Growth (CGC) shares were up 49% intraday, while Tilray Brands (TLRY) soared 39%. SNDL (SNDL) and Aurora Cannabis (ACB) were also showing sizable gains.

US Treasury yields were higher, with the 10-year rate up 4.9 basis points at 4.19% and the two-year rate increasing one basis point to 3.54%.

Chicago Fed President Austan Goolsbee said Friday that policymakers "should have waited" for more data, especially on inflation, before delivering their third straight rate cut earlier this week.

"I remain optimistic that interest rates can come down a significant amount over the next year," Goolsbee said. "My unease is about too heavily front-loading rate cuts and just assuming that inflation will be transitory."

Goolsbee and Kansas City Fed President Jeffrey Schmid voted in favor of leaving interest rates steady.

Schmid separately said that with inflation pressures still evident, "my preference would be to keep monetary policy modestly restrictive."

Philadelphia Fed President Anna Paulson, however, said she's "still a little more concerned" regarding labor market weakness than about upside risks to inflation.

West Texas Intermediate crude oil was up 0.1% at $57.64 a barrel intraday.

Gold rose 0.4% to $4,328.60 per troy ounce, while silver dropped 4% to $62.01 per ounce.

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