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Broadcom ( AVGO ) jumps as it forecasts Q1 revenue above estimates

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S&P, Dow set for weekly declines, Nasdaq on track for

gains

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Indexes down: Dow 0.09%, S&P 500 0.04%, Nasdaq 0.01%

(Updates with midsession trading)

By Echo Wang

Dec 13 (Reuters) - Wall Street's main indexes edged

lower on Friday as rising government bond yields weighed on

investor sentiment, while an optimistic forecast from Broadcom ( AVGO )

helped sustain enthusiasm around artificial intelligence.

Broadcom ( AVGO ) forecast quarterly revenue surpassing Wall

Street expectations and predicted robust growth in demand for

its custom AI chips over the next few years. The optimistic

outlook propelled the company's shares nearly 20% higher,

pushing its market capitalization past $1 trillion for the first

time.

Chip stocks were mixed, with Broadcom ( AVGO ) rival Marvell

Technology ( MRVL ) rising 9.4%, while AI bellwether Nvidia ( NVDA )

reversed gains and was last down 2.5%. But a gauge for

semiconductor stocks added 2.5%.

Yields on U.S. Treasuries rose across the board, with ones

on the benchmark 10-year bond hitting a three-week

high.

"Right now the interest rate selloff is winning," Said Jay

Hatfield, chief executive officer at Infrastructure Capital

Management in New York, "It's pretty natural for value and

income stocks to go down when tech stocks are rising."

Technology stocks continued their upward momentum, driving

the Nasdaq above the 20,000 mark for the first time on

Wednesday. The rally was further bolstered by an in-line

inflation report, which solidified expectations for a 25

basis-point interest rate cut from the Federal Reserve in its

meeting next week.

Trader bets on the cut at the central bank's Dec. 17-18

meeting stand at near 97%, according to CME's FedWatch Tool.

However, they indicate chances of a pause in January.

At 1:42 p.m. EST the Dow Jones Industrial Average

fell 40.91 points, or 0.09%, to 43,873.21, the S&P 500

lost 2.58 points, or 0.04%, to 6,048.67 and the Nasdaq Composite

lost 2.86 points, or 0.01%, to 19,899.98.

Wall Street had taken a breather in the previous session

after recent gains and some hot economic data ahead of the Fed's

meeting, setting up the benchmark S&P 500 and the Dow for weekly

losses. However, the Nasdaq was on track to end the week higher.

U.S. stocks have repeatedly reached all-time highs this

year, driven by surging interest in heavyweight tech companies

capitalizing on artificial-intelligence trends.

Investor sentiment also received a boost following Donald

Trump's presidential election victory, as markets anticipate his

pro-business policies could enhance corporate profitability.

Among other movers, RH jumped 14% after the home

furnishings retailer reported higher net revenue for the third

quarter, while D.R. Horton ( DHI ) eased 2.1% as J.P. Morgan

downgraded its rating on the homebuilder to "underweight."

Declining issues outnumbered advancers by a 2.64-to-1 ratio

on the NYSE. There were 76 new highs and 124 new lows on the

NYSE.

The S&P 500 posted 8 new 52-week highs and 15 new lows while

the Nasdaq Composite recorded 62 new highs and 186 new lows.