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Broadcom Soars Nearly 10% as Chip Stocks Ride Fed Rate Cut Optimism

MarketDash Editorial Team
13 days ago
Broadcom jumped almost 10% Monday as semiconductor stocks rallied on growing expectations for a December Fed rate cut, with investors now pricing in a 77% chance of easing after dovish signals from policymakers.

Broadcom Inc. (AVGO) had itself a Monday, climbing nearly 10% as chip stocks joined a broad tech rally fueled by fresh hopes that the Federal Reserve might actually cut rates next month.

The catalyst? Federal Reserve Governor Christopher Waller signaled support for a December rate cut, giving investors permission to pile back into risk assets. Fellow Fed official John Williams chimed in with similarly dovish remarks, helping calm nerves after recent market volatility. Sure, not everyone at the Fed is singing the same tune—some policymakers remain cautious ahead of next month's FOMC meeting—but the mood has definitely shifted.

The numbers tell the story: according to CME Group's FedWatch Tool, traders now see a 76.9% probability of a 25-basis-point cut in December. That's up dramatically from 42% just a week ago. Wall Street's major indexes climbed in response, with tech and mega-cap stocks leading the charge.

The Technical Picture

Broadcom is trading about 7.5% above its 50-day moving average of $348.14 and nearly 40% above its 200-day moving average of $268.23. The relative strength index sits at 43.83—a neutral reading that suggests the stock isn't overheated and has room to run.

Support is at $337.27, while resistance looms at $376.08. Break through that ceiling, and the stock could test its 52-week high of $386.48. Fall below support, and the bulls might start getting nervous.

With a market cap of $1.61 trillion, Broadcom ranks among the semiconductor heavyweights, competing with the likes of NVIDIA and Alphabet. Strong fundamentals and persistent demand for chips continue supporting its growth story.

As the stock approaches resistance, traders are paying attention. A move above $376.08 could trigger fresh momentum toward new highs, while slipping below $337.27 would raise short-term warning flags.

Broadcom shares closed up 9.95% at $374.10 on Monday, putting the stock within striking distance of its 52-week high.

Back to News

Broadcom Soars Nearly 10% as Chip Stocks Ride Fed Rate Cut Optimism

MarketDash Editorial Team
13 days ago
Broadcom jumped almost 10% Monday as semiconductor stocks rallied on growing expectations for a December Fed rate cut, with investors now pricing in a 77% chance of easing after dovish signals from policymakers.

Broadcom Inc. (AVGO) had itself a Monday, climbing nearly 10% as chip stocks joined a broad tech rally fueled by fresh hopes that the Federal Reserve might actually cut rates next month.

The catalyst? Federal Reserve Governor Christopher Waller signaled support for a December rate cut, giving investors permission to pile back into risk assets. Fellow Fed official John Williams chimed in with similarly dovish remarks, helping calm nerves after recent market volatility. Sure, not everyone at the Fed is singing the same tune—some policymakers remain cautious ahead of next month's FOMC meeting—but the mood has definitely shifted.

The numbers tell the story: according to CME Group's FedWatch Tool, traders now see a 76.9% probability of a 25-basis-point cut in December. That's up dramatically from 42% just a week ago. Wall Street's major indexes climbed in response, with tech and mega-cap stocks leading the charge.

The Technical Picture

Broadcom is trading about 7.5% above its 50-day moving average of $348.14 and nearly 40% above its 200-day moving average of $268.23. The relative strength index sits at 43.83—a neutral reading that suggests the stock isn't overheated and has room to run.

Support is at $337.27, while resistance looms at $376.08. Break through that ceiling, and the stock could test its 52-week high of $386.48. Fall below support, and the bulls might start getting nervous.

With a market cap of $1.61 trillion, Broadcom ranks among the semiconductor heavyweights, competing with the likes of NVIDIA and Alphabet. Strong fundamentals and persistent demand for chips continue supporting its growth story.

As the stock approaches resistance, traders are paying attention. A move above $376.08 could trigger fresh momentum toward new highs, while slipping below $337.27 would raise short-term warning flags.

Broadcom shares closed up 9.95% at $374.10 on Monday, putting the stock within striking distance of its 52-week high.

    Broadcom Soars Nearly 10% as Chip Stocks Ride Fed Rate Cut Optimism - MarketDash News