Nasdaq Index: Tech Stocks Retreat, but Broadcom’s AI Rally Buoys Sentiment

Other notable moves included Marvell Technology, which added 7.14%, and Arm Holdings, up 2.77%. On the downside, Advanced Micro Devices fell 4.08%, and MongoDB tumbled 4.54% following investor profit-taking after recent strength.

Former Dallas Fed President Robert Kaplan warned that inflation remains stubborn, citing mixed signals in services, food, and vehicles. He argued that current fiscal spending levels might sustain inflationary pressures, calling for a cautious approach to interest rate cuts. Kaplan’s remarks reinforced the likelihood that the Federal Reserve could maintain higher rates longer than anticipated.

Market Forecast: Where Could the Market Be Headed Next?

Technology stocks, particularly in AI-driven sectors, remain a bright spot, supporting a modestly bullish outlook for the Nasdaq. However, weak performances in economically sensitive sectors like energy and materials suggest broader market risks persist.

The S&P 500 may continue to consolidate as traders weigh macroeconomic signals and Fed policy implications. Expect technology stocks to drive outperformance in the near term, while defensive sectors provide a buffer against further downside. Traders should monitor upcoming inflation data and central bank commentary for clearer direction.