(Reuters) – The New York Stock Exchange opened higher on Friday, driven by technology stocks, as optimistic forecasts from semiconductor manufacturer Broadcom fueled euphoria around artificial intelligence (AI).

In early trading, the Dow Jones index gained 48.07 points, or 0.11%, to 43,962.19 points and the broader Standard & Poor’s 500 rose 20.60 by 0.34% to 6,071.85. points.

The Nasdaq Composite gained 0.50%, or 99.71 points, to 20,002.55, thus returning above the 20,000 point mark which it had reached for the first time on Wednesday, before falling below this threshold on Thursday.

Technology stocks lead gains Friday and send the Nasdaq shining again after Broadcom said late Thursday that demand for its artificial intelligence chips will continue to grow in the coming years.

The group also anticipated quarterly turnover higher than estimates.

Broadcom shares gained 19% at the opening, and with it the rest of the sector: Marvell Technology gained 8%, Micron Technology increased 2.2% and Nvidia advanced 1.1%.

“Customers have been excited about how AI could increase their profits…this flurry of activity has also put Broadcom on investors’ radar as an alternative way to play the AI ​​boom to Nvidia,” said Dan Coatsworth, investment analyst at AJ Bell.

On the macroeconomic front, investors remain on guard ahead of next week’s Federal Reserve (Fed) meeting, during which markets expect an interest rate cut of 25 basis points.

Traders’ bets on a cut at the December 17-18 central bank meeting stand at more than 96%, according to the CME’s FedWatch tool. However, they indicate that there could be a pause in January, with only two further relaxations planned by the end of 2025.

(Written by Diana Mandiá, edited by Blandine Hénault)

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