Broadcom(US:AVGO) Sou Hu Cai Jing·2025-09-05 05:54Group 1 - The latest U.S. employment data shows that 54,000 private sector jobs were added in August 2025, lower than the revised 106,000 jobs in July and below the market expectation of 65,000 [2] - Initial jobless claims increased by 8,000 to 237,000, marking a 10-week high, but still below the expected 230,000 [2] - The second quarter U.S. non-farm productivity was revised up from 2.4% to 3.3%, exceeding the expected 2.7%, while unit labor costs were revised down from 1.6% to 1.0%, below the expected 1.2% [2] Group 2 - The ISM services index for August rose by 1.9 points to 52.0, indicating expansion in the services sector and reaching a six-month high, surpassing the expected 51.1 [2] - Market expectations for the Federal Reserve to cut rates by 25 basis points on September 25 have increased from 96.6% to 99.3% [2] - Expectations for the federal funds rate to drop to 3.50%-3.75% by December 2025 have risen from 43.09% to 50.14%, indicating a higher probability of three rate cuts remaining this year [4] Group 3 - U.S. Treasury yields have decreased, leading to gains in both the stock and bond markets, with the Dow Jones Industrial Average rising by 0.77%, the S&P 500 up by 0.83%, and the Nasdaq up by 0.98% [6] - Broadcom (AVGO.US) has seen its stock price increase significantly, with a market capitalization of $1.44 trillion, surpassing Berkshire Hathaway and Tesla [6] - Broadcom reported better-than-expected Q3 earnings and provided strong guidance, benefiting from demand for custom chips from cloud service companies like Google [6][7] Group 4 - Despite rumors of Google potentially ending its partnership with Broadcom to produce its own AI chips, Broadcom remains a major beneficiary of the AI trend [7] - Salesforce (CRM.US) reported better-than-expected earnings but provided weaker revenue guidance, leading to a 4.85% decline in its stock price [8] - Figma (FIG.US), which went public in July, saw its stock price drop significantly after a brief surge, indicating volatility in the market for newly listed companies [8] Group 5 - The interaction between macroeconomic policies and economic data will continue to drive market trends, with potential for quicker rate cuts if non-farm reports indicate economic slowdown [9] - The divergence in corporate earnings and narratives related to AI will persist, highlighting the need to be cautious of overvalued stocks with questionable earnings potential [9]