Pre-Market Update: The AI Trade Takes a Hit as Broadcom Earnings Shake Nasdaq Futures

TLDR

• Broadcom’s AI chip revenue forecast disappointed Wall Street, sending its shares down over 12% in premarket trading
• Nasdaq 100 futures fell around 1%, while Dow futures rose 0.5% as blue-chip stocks benefited from falling oil prices
• Oil prices dropped after Israel and Lebanon agreed to renew their ceasefire, with Brent crude slipping to $97.03 a barrel
• Bitcoin fell 4.8% in 24 hours to $63,857, reflecting broader risk-off sentiment in markets
• SpaceX confirmed plans for a record $75 billion IPO in a new filing

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Broadcom shares dropped more than 12% in premarket trading on Thursday after the chipmaker’s third-quarter revenue guidance failed to meet investor expectations. While the outlook narrowly beat analyst forecasts, markets had been hoping for a bigger beat.

The disappointment hit the wider tech sector hard. Micron and Sandisk also slumped in early trading. Nasdaq 100 futures fell around 1.1%, while S&P 500 futures dropped 0.3%.

Nasdaq 100 Jun 26 (NQ=F)

The major indexes had already fallen on Wednesday, snapping a five-session winning streak in which all three gauges had set record closing highs.

Dow Bucks the Trend

Not all indexes moved lower. Dow futures climbed around 234 points, or 0.5%, early Thursday. The gain was driven partly by falling oil prices, which benefited several of the index’s blue-chip members.

Oil fell after Israel and Lebanon agreed to renew their ceasefire, on the condition that Iran-backed Hezbollah stops its attacks. Brent crude slipped 0.8% to $97.03 a barrel. West Texas Intermediate dropped 0.7% to $95.32.

Geopolitical tensions also remain in focus. On Wednesday evening, the House of Representatives voted to end the war with Iran, a rebuke to President Trump. The move came after the most serious escalation between the US and Iran since the April ceasefire.

The US dollar edged 0.1% lower against a basket of currencies. The yield on the 10-year Treasury note was down one basis point at 4.49%.

Bitcoin Slides With Tech

Bitcoin fell 4.8% over 24 hours to $63,857. The drop reflected the broader risk-off mood in markets following the Broadcom miss and ongoing geopolitical uncertainty.

SpaceX confirmed in a new filing it plans a $75 billion IPO, which would be a record-breaking listing if it proceeds.

Wall Street is also watching the labor market ahead of Friday’s May jobs report. Weekly jobless claims and layoff data from Challenger, Gray & Christmas are both due Thursday.

Earnings continue with Ciena, lululemon, and DocuSign set to report results later in the day.

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