Good Morning Investors!!! This morning’s trading tone is being driven primarily by interest rates and oil. The 10-year Treasury yield is back near 4.121% as of 6:05 AM ET, and crude’s rise is renewing inflation concerns. On the equity side, Broadcom’s upbeat outlook and buyback supported the artificial intelligence (AI) theme, while Bitcoin continues to react to regulatory developments in Washington. Key events today include jobless claims at 8:30 AM ET, a Federal Reserve (Fed – the U.S. central bank) speech at 1:15 PM ET, and earnings from Costco and Marvell after the close, with Friday’s jobs report at 8:30 AM ET as the main macro focus.
|
|
Key Market Drivers
Treasury yields jumped back to early-Feb highs Overnight, U.S. Treasuries sold off and the 10-year yield rose to 4.121%, up 3.9 basis points (1 bp = 0.01 percentage point). Oil-driven inflation worries played a role, but the data came in firm too: the Institute for Supply Management (ISM – business survey group) Services PMI hit 56.1 vs. 53.5 expected, and ADP reported +63,000 private-sector jobs. Even with South Korea’s KOSPI up about 11% overnight, higher yields can dampen risk appetite by increasing the relative attractiveness of bond returns and raising borrowing costs. 
Brent Crude Oil 3-5-2026
Oil’s supply scare keeps getting pricier: Oil prices extended gains again overnight, with WTI around $76–$77 a barrel and Brent around $83–$84. The widening conflict has disrupted traffic through the Strait of Hormuz, and roughly 300 vessels (including oil tankers) have been delayed or stalled, keeping a meaningful risk premium embedded in prices. When oil rises this quickly, inflation concerns typically increase because energy is a direct input into production, shipping, and travel costs. That can support energy producers but weigh on airlines, transportation companies, and consumers. The near-term questions are whether shipping-related headlines ease and whether crude can hold above the mid-$70s over the next 24 to 48 hours. Broadcom fanned the tech spending flames: Shares of Broadcom (AVGO) jumped about 7% premarket after the company projected AI-chip revenue could exceed $100 billion by 2027 and announced a $10 billion share buyback. It guided fiscal Q2 revenue to about $22 billion versus $20.56 billion expected, reinforcing expectations that AI-related infrastructure spending remains resilient. This matters because big tech is expected to spend more than $630 billion this year on AI infrastructure, and chipmakers, networking firms, and data-center suppliers often trade in line with that spending cycle. The next key test is whether upcoming earnings and capital spending updates from the largest technology firms keep that outlook intact, or whether investors press harder for evidence of measurable returns. Crypto got whiplash from Washington headlines: Bitcoin traded around $72,800 early Thursday as investors assessed developments around the Clarity Act. Talks reportedly ran into renewed friction after banks objected to letting crypto firms offer rewards tied to stablecoins (a crypto token designed to track $1), warning it could pull deposits out of the banking system. For markets, the primary issue is regulatory clarity more than the bill’s detailed language, because clearer guardrails can make it easier for large institutions to participate and can influence performance across crypto-linked stocks. Next, watch for signs the bill is advancing again, and monitor whether Bitcoin can stay above $70,000 in the next 24 to 48 hours. |
|
Wind Power
Wind power is the business of building wind farms and making the turbines that feed them. It matters because U.S. power demand is climbing, and wind can add generation without years of new fuel infrastructure. One easy way to track the theme is an exchange traded fund (ETF).
The First Trust Global Wind Energy ETF (FAN) fell about 2.2% over the last five sessions, from $24.42 on Feb. 26 to $23.88 at the March 4 close. The big driver is the “three Ps”: policy, permits, and the price of money. U.S. offshore wind has been hit with stop-orders and legal fights, and higher rates can turn a good project into an expensive one.
GE Vernova (GEV):
GE Vernova sells power equipment, including wind turbines, grid gear, and gas turbines. Its edge is diversification, so strong demand for grid and power gear can offset a choppy wind cycle. Management has pointed to strong order flow tied to rising power demand, while flagging wind execution issues.
Ørsted (DNNGY):
Ørsted develops and operates offshore wind farms, then sells electricity under long contracts. Its differentiator is scale and offshore experience, which helps when projects get delayed and budgets get tested. In the U.S., some work has resumed after court rulings, but the rulebook is still shifting.
InvestorsGrow Takeaway:
Watch the 10-year Treasury yield, because wind projects are debt-heavy and higher yields can shrink returns. Two metrics are turbine order backlog (often in gigawatts, GW – power capacity) and signed power purchase agreements (PPA – long-term electricity contract). A key risk signal is a wave of project pauses or contract renegotiations, which usually means costs are outrunning prices. If yields cool while backlog and PPAs rise, wind-exposed names are more likely to benefit.
Broadcom (AVGO)
Broadcom (AVGO) makes chips and infrastructure software that help data centers and networks run. Think of it as the contractor that builds the data highways, then sells the control room that keeps traffic moving.
Yesterday Broadcom reported quarterly results, guided higher, and said AI chip sales could top $100 billion in 2027, alongside a $10 billion share buyback. Shares rose after the close and were up about 7% in premarket trading.
AVGO – 1 Year Price Chart March 5, 2026
Over the past year, Broadcom is up about 71% and roughly 696% over the past five years. Those gains indicate continued confidence in the longer-term story, but they also raise expectations for quarter-by-quarter execution and follow-through.
The move fits the broader picture: large cloud providers continue to buy AI chips and the networking gear that connects them, and Broadcom sells both. It competes with Nvidia and AMD on AI processors, and with Marvell in custom chip work, while also trying to keep its software segment growing. Broadcom is around a $1.36 trillion market cap, so surprises can have an outsized impact on market sentiment.
One number to watch is the $10.7 billion of AI chip revenue Broadcom expects next quarter. It matters because it provides a near-term read on whether AI spending is translating into revenue now, not just longer-term forecasts.
Going forward, watch the next earnings report, the pace of AI chip revenue, and whether software growth stays steady. If that AI revenue figure continues to trend higher, the 2027 target looks more defensible; if it softens, investors will quickly focus on where share is shifting and whether customers are increasingly designing chips in-house.
InvestorsGrow Takeaway:
Broadcom is positioning itself as a key supplier to the AI buildout, supported by faster AI revenue and a meaningful buyback program. The upside is continued AI-driven growth and shareholder returns through repurchases. The risks are intense competition and customers that can change plans quickly, especially if they expand in-house chip design.
