Stock market today: Tech leads stocks higher after Broadcom earnings boom

• US stocks jumped on Friday, partly driven by Broadcom's blowout earnings report.
• Broadcom's AI revenue soared 220% this year, helping drive its stock up 18% on Friday.
• Investors are eyeing the Fed meeting next week, anticipating a 25 basis point rate cut.

US stocks jumped on Friday, with technology stocks leading the market higher after Broadcom's blowout earnings report.

Broadcom stock soared 18% in Friday morning trades after the company said growing demand for its AI chips is driving a boom in its business.

The company reported fourth-quarter profits that were ahead of analyst estimates and said its AI revenue increased 220% for the year to $12.2 billion.

Broadcom CEO Hock Tan said the AI boom should continue for the company, which is developing custom AI chips for hyperscaler cloud companies.

"We see an opportunity over the next three years in AI," Tan said on his company's earnings call. "Massive specific hyperscalers have begun their respective journeys to develop their own custom AI accelerators."

The surge in Broadcom shares helped lift broader markets, which are trying to recoup their losses from Thursday's trading session. Meanwhile, the Dow Jones Industrial Average was looking to snap a six-day losing streak.

Looking ahead to next week, investors will be focused on the Federal Reserve's meeting of the Federal Open Market Committee.

November's consumer and wholesale inflation reports released this week showed prices edging higher, but not enough to derail expectations for the Fed to continue easing monetary policy. According to the CME FedWatch Tool, investors see a 96% chance the central bank cuts by a quarter-point next Wednesday.

Here's where US indexes stood shortly after the 9:30 a.m. opening bell on Friday:

• S&P 500: 6,070.48, up 0.32%
• Dow Jones Industrial Average: 43,965.75, up 0.12% (+51.63 points)
• Nasdaq composite: 20,009.70, up 0.5%

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In commodities, bonds, and crypto:

• West Texas Intermediate crude oil rose 0.43% to $70.32 a barrel. Brent crude, the international benchmark, was higher by 0.38% to $73.69 a barrel.
• Gold decreased 1.02% to $2,681.70 an ounce.
• The 10-year Treasury yield rose 2 basis points to 4.358%.
• Bitcoin rose 0.33% to $100,367.