US equities close flat as Nasdaq extends weekly gains, but S&P 500 and Dow decline

In a quiet session on Friday, US stocks ended the trading week near the unchanged mark, with the S&P 500 and Dow suffering weekly drops and the Nasdaq securing its fourth consecutive week of gains.

Broadcom (AVGO.O) forecasted quarterly revenue that above Wall Street projections, as well as significant increase in demand for its specialized AI chips over the next years. The positive forecast drove the company's shares up 24%, bringing its market worth above $1 trillion for the first time.

Chip stocks were mixed, with Broadcom rival Marvell Technology (MRVL.O) up 10.8% and AI powerhouse Nvidia (NVDA.O) down 2.2%. However, a barometer of semiconductor stocks (.SOX) rose 3.2%.

Yields on US Treasuries increased across the board, with the benchmark 10-year note reaching a three-week high.

"Right now, the interest rate selloff is winning," said Jay Hatfield, CEO of Infrastructure Capital Management in New York. "It's quite reasonable for value and income equities to fall while tech stocks rise."

Technology stocks maintained their upward trend, propelling the Nasdaq above 20,000 for the first time on Wednesday. The rise was boosted further by an in-line inflation report, which confirmed expectations for a 25 basis-point interest rate drop from the Federal Reserve at its meeting next week.

According to CME's FedWatch Tool, trader bets on a rate drop at the central bank's December 17-18 meeting are near 97%. However, they signal the possibility of a hiatus in January.