Broadcom (AVGO) stock experienced a 5.4% decline during the afternoon session due to a market pullback, with concerns arising over trade tariffs. President Trump's announcement clarified that the 25% tariffs on Venezuela would extend to any country engaging in business with Venezuela. For instance, the 25% tariff on China is in addition to the existing 20% tariff because of China's oil imports from Venezuela, potentially resulting in a 45% tariff on specific Chinese goods. These developments could significantly increase operating costs for affected companies and institutions.

Furthermore, there were indications of unrest in the market as the US President proposed new tariffs on auto imports preceding the scheduled "reciprocal" tariffs by April 2, 2025. Reports also emerged that the US added more Chinese companies to its trade blacklist citing national security concerns. This could impact tech firms heavily reliant on US-manufactured advanced chips, raising uncertainties about the US chip makers' sales in the Chinese market.

Broadcom's stock has demonstrated high volatility with 28 significant movements exceeding 5% in the past year. Despite today's decline, the market perceives this news as significant but not altering its fundamental view of the company. A recent notable movement occurred when the stock rose 5% after the Federal Open Market Committee maintained rates at 4.25% to 4.50% in its March 2025 meeting. Mentioning an intent for two more rate cuts, the committee alluded to the growing economic uncertainty. While maintaining rates provided no surprises, the committee lowered the growth outlook to 1.7% and raised the inflation projection to 2.8%, indicating a potential scenario of stagflation with rising inflation amidst slowing economic growth.