Nasdaq futures lead declines after Broadcom results disappoint

By Medha Singh and Twesha Dikshit

June 4 (Reuters) - ‌S&P 500 and ​Nasdaq 100 ​futures fell on Thursday, as Broadcom's revenue miss pressured chip stocks, while equity investors took a breather after a strong rally to record highs.

Broadcom shares slumped 13.5% in premarket trading after the chipmaker ‌also stuck to its long-range forecast of $100 billion in sales from its AI chips. The ⁠stock, which has climbed nearly 55% this quarter, could shave off over $270 billion in market value, if losses sustain through the session.

"Broadcom is ‌finding that meeting and even slightly beating ‌forecasts is not enough when the market is holding it to such a high standard," said Dan Coatsworth, head of markets at AJ Bell.

Other chipmakers also fell with Micron Technology, Advanced Micro Devices, Marvell Technology and ​Qualcomm down between 4.1% and 7.4%.

The record-setting rally on Wall Street has stalled this week, putting at risk the series of nine straight weekly gains for the S&P 500, as investors weighed a renewed flare-up in hostilities ⁠between the United States and Iran.

Although the two sides agreed to a ceasefire in early April, talks to end the war and reopen the Strait of ​Hormuz have made little progress, threatening to keep oil prices elevated and stoke inflation.

"The shift feels less like a fundamental change in narrative and more like a combination of ​profit-taking, stretched positioning and a reassessment of geopolitical risks after weeks ‌of almost uninterrupted gains," said Daniela Hathorn, senior market analyst at Capital.com.

At 06:47 a.m. ET, Dow E-minis were up 204 points, or 0.4%, S&P 500 E-minis were down 36.75 points, ⁠or 0.49%, and Nasdaq 100 E-minis were down 369 points, or 1.2%.

An ISM survey on Wednesday showed the U.S. services sector expanded in May. Weekly jobless claims data, due later in the day, will be the last economic reading before Friday's broader monthly employment ⁠report.

The data will give new Federal Reserve Chairman Kevin Warsh a fresh read on the U.S. labor market as he heads into ​his first policy meeting this month, at a time when U.S. consumers are under strain from Iran war-driven price pressures.

Traders see a 75% chance of a 25-basis-point rate hike before the end of the year, LSEG data showed.

Federal Reserve Bank of Richmond President Thomas ‌Barkin and San Francisco Fed President Mary Daly are also due to speak on Thursday, among the last appearances before the Fed's pre-meeting blackout period.

Among market movers, CrowdStrike slumped ‌10.4% after the cybersecurity company reported a rise in its first-quarter operating expenses.

An investor roadshow for Elon Musk-led SpaceX begins on ⁠Thursday ahead of its market debut on June ‌12. It aims to raise $75 billion ​in a record IPO that would value it at $1.75 trillion and rank it among the top 10 U.S.-listed firms.

(Reporting by Medha Singh and Twesha Dikshit in Bengaluru; Editing by Shinjini Ganguli and ‌Devika Syamnath)

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