Futures Mixed as Broadcom Slump Weighs on Tech

U.S. stock futures were mixed on Thursday after Broadcom dropped 14% in premarket trading following a revenue shortfall, pulling technology shares lower and putting the S&P 500’s nine-week winning streak at risk as investors awaited jobs data and remarks from Federal Reserve officials.

Futures tied to the S&P 500 slipped 0.35% and Nasdaq 100 futures fell about 1%, while Dow Jones futures traded roughly 0.4% higher, reflecting a rotation away from tech-heavy benchmarks after recent gains pushed major indexes to record highs.

Broadcom was the main drag on the chip sector. The company missed revenue expectations and maintained a long-range target of $100 billion in sales from AI-related chips. The stock had risen nearly 55% this quarter; if premarket losses hold through the trading day, Broadcom’s market value could fall by more than $270 billion.

Other technology names weighed on the market. CrowdStrike shares fell about 10% after the cybersecurity firm reported higher first-quarter operating expenses. An investor roadshow for Elon Musk-led SpaceX began on Thursday as the company prepares for a June 12 market debut.

Economic data and central bank commentary were also in focus. An ISM survey released this week showed the U.S. services sector expanded in May. Weekly jobless claims were due later on Thursday and will be the last major labour-market reading before Friday’s nonfarm payrolls report.

Geopolitical developments added uncertainty. Recent flare-ups in U.S.-Iran tensions persisted despite a ceasefire in April, and talks to reopen the Strait of Hormuz have made little progress. Oil prices remained elevated.

Market participants will watch corporate earnings, speeches by Federal Reserve officials and the SpaceX roadshow for cues before the open. Weekly jobless claims and Friday’s nonfarm payrolls will be used to assess the state of the labour market.