Overview
- Broadcom beat revenue and earnings expectations but cautioned that custom AI processors are pressuring margins, sending shares down about 11%.
- Oracle’s cloud revenue missed forecasts and it lifted its fiscal 2026 capital spending plan by $15 billion to $50 billion, extending a selloff tied to concerns over converting its roughly $523 billion backlog and a $300 billion OpenAI agreement into revenue.
- Oracle rejected a Bloomberg report that some OpenAI-focused data centers were delayed to 2028, saying all milestones remain on track and no sites tied to its contractual commitments are behind schedule.
- The S&P 500 fell 1.1%, the Nasdaq lost 1.7% (about 398 points), and the Dow slipped 0.5% Friday, even after the Dow notched an intraday record earlier and finished the week higher.
- Rising Treasury yields near 4.19% on the 10-year and recent Federal Reserve remarks added pressure to valuation‑sensitive tech, accelerating a rotation into staples and healthcare and knocking semiconductors and data‑center plays lower.