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

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Chip stocks post varied performance

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Investors await Fed's Dec. 17-18 meeting

(Recasts with preliminary market close)

By Echo Wang

Dec 13 (Reuters) - U.S. stocks closed out the trading

week near the unchanged mark in a subdued session on Friday,

with the S&P 500 and Dow posting weekly declines, while the

Nasdaq secured its fourth consecutive week of gains.

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 higher, pushing its

market capitalization past $1 trillion for the first time.

Chip stocks were a mixed bag on Friday, with Broadcom ( AVGO ) rival

Marvell Technology ( MRVL ) gaining, while AI bellwether Nvidia ( NVDA )

gave up earlier gains. However, the broader

semiconductor index managed to advance, reflecting

ongoing strength in the sector despite some individual stock

declines.

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.

According to preliminary data, the S&P 500 lost 0.19

points, or 0.00%, to end at 6,051.06 points, while the Nasdaq

Composite gained 21.69 points, or 0.11%, to 19,924.53.

The Dow Jones Industrial Average fell 85.68 points, or

0.20%, to 43,828.44.

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 ended 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 rose after the home

furnishings retailer reported higher net revenue for the third

quarter, while D.R. Horton ( DHI ) declined as J.P. Morgan

downgraded its rating on the homebuilder to "underweight."