US stocks closed sharply lower on Friday as a Broadcom-led rout among the largest tech weights sparked a rotation into cyclicals and defensive names. The S&P 500 fell 1% and the Dow gave back 0.4% after touching record highs, while the Nasdaq dropped 1.8%, with Broadcom plunging 11.4% after warning of margin pressure. Other heavyweight, AI-exposed and semiconductor names also posted steep losses, including Nvidia (-3.3%), Oracle (-4.5%), Palantir (-2.1%), AMD (-4.8%), and Micron (-6.7%) setting the pace for a sharp selloff in the sector. The pullback reflects margin concerns and growing caution around AI-linked names, even as the Fed’s recent rate cuts continue to underpin broader sentiment. The Fed’s Cleveland President signaled a preference for slightly tighter policy to curb inflation. Lululemon bucked the trend, jumping 9.6% after raising its full-year outlook and announcing a CEO transition. For the week the S&P 500 lost 0.5%, the Dow was up 1.2%, and the Nasdaq fell 1.9%.
The rupee slipped past 90.6 per USD, hitting a fresh all-time low, pressured by the absence of a trade deal with the US amid prolonged negotiations and continuous withdrawal of foreign funds. The currency has slid over 5% this year, making it the worst performer in Asia, as steep US tariffs weighed on exports. Ongoing talks remain central to the outlook, with Prime Minister Narendra Modi speaking with President Donald Trump this week, as New Delhi seeks relief from up to 50% US tariffs on some Indian goods. Meanwhile, India’s consumer price inflation accelerated to 0.71% in November, from October’s record low of 0.25% and broadly matching the market consensus of 0.7%. Despite the uptick, inflation remained below the Reserve Bank of India’s lower tolerance threshold of 2% for the third straight month, leaving scope for further interest rate cuts in 2026. The central bank will get the December reading before its February policy meeting to gauge underlying inflation more clearly.
