Jobs Shock Lowers Yields; Broadcom Drives NASDAQ

Two clear, concrete developments moved the major U.S. indexes over the last 24 hours: an unexpectedly weak U.S. jobs report that repriced interest-rate expectations, and Broadcom’s strong AI-led earnings and guidance that favored large-cap technology. Together they produced a volatile session in which growth-sensitive names initially outperformed while rate-sensitive sectors weakened.

Jobs shock sends yields lower and raises Fed-cut odds

The payrolls picture

U.S. nonfarm payrolls rose far less than forecast, with net new jobs roughly in the low tens of thousands versus consensus in the high tens of thousands. The unemployment rate ticked higher. That shortfall signaled softer near-term demand in the economy and forced traders to reconsider how quickly the Federal Reserve will ease policy.

Bond reaction and policy implications

Treasury yields fell across the curve after the release: the 10-year yield dropped into the low 4% area and the 2-year eased more notably. Lower yields shortened expected time to the first Fed cut on swaps pricing, altering the relative attractiveness of rate-sensitive and rate-benefiting sectors. Banks, which depend on a steeper yield curve for net interest margins, came under pressure while long-duration tech benefited from cheaper financing rates.

Broadcom’s AI surge fuels Nasdaq strength

Earnings and outlook that mattered

Broadcom reported quarterly results that outpaced expectations and highlighted fast-growing AI-related revenue. Management set a robust near-term revenue guide, signaling continued demand for chips and software tied to generative AI deployments. The combination of strong current trends and forward guidance pushed Broadcom shares materially higher and gave investors a concrete growth story to bid up large-cap tech names.

How index performance diverged

The U.S. benchmark indexes reacted unevenly. The Nasdaq, with a heavy weighting of mega-cap tech names including Broadcom, enjoyed early upside as investors rotated into duration-sensitive growth. The S&P 500 saw mixed action: tech gains were offset by weakness in financials and some consumer discretionary names that faced headwinds. The Dow, being price-weighted and exposed to several lagging industrial and financial components, underperformed the tech-led lift.

What this means for investors

Near-term positioning

Expect continued sensitivity to macro data ahead of the next major Fed decision: soft economic prints will likely keep yields subdued and favor long-duration assets, while any rebound in jobs or inflation prints could quickly reverse that dynamic. Earnings that provide clear, company-level growth drivers—like Broadcom’s AI exposure—will carry extra weight in determining index leadership.

Key upcoming items to watch

Market-moving items to monitor include subsequent employment and inflation releases, upcoming Fed communications, and earnings and guidance from other large-cap technology and financial firms. Those data points will determine whether the current split between growth and value persists or narrows.

Bottom line: a tangible macro surprise on jobs repriced rates and tilted sentiment, while Broadcom’s concrete AI-forward beat offered a clear sector-level catalyst that helped prop up the Nasdaq during the session.