Broadcom Shares Drop 13% on First Revenue Miss Since 2024

Stock futures pointed to a mixed open Thursday, with technology shares leading declines after Broadcom reported revenue that fell short of expectations and several semiconductor companies followed with their own weak moves. The S&P 500 futures slipped 0.4 percent, while Nasdaq 100 futures dropped 1.1 percent. Dow Jones Industrial Average futures rose 226 points, or 0.4 percent.

Broadcom shares fell more than 13 percent in premarket trading after the company posted fiscal second-quarter results that missed Wall Street targets. CrowdStrike also declined sharply, dropping 10 percent after issuing softer-than-expected revenue guidance for its upcoming quarter. Other semiconductor names moved lower as well, with Arm Holdings, Micron Technology and Marvell Technology each down roughly 6 percent. The VanEck Semiconductor ETF lost more than 3 percent before the bell.

The moves extended a pullback that began the previous session, when rising tensions in the Middle East weighed on broader indexes. Recent exchanges between the United States and Iran have included Iranian strikes on Kuwait International Airport and U.S. Central Command reports of intercepting ballistic missiles and drones before conducting strikes on Qeshm Island. Markets have absorbed these developments alongside a nine-week winning streak for the S&P 500 that had carried major indexes to fresh records.

Market observers described the selling as consistent with normal pauses after extended advances. Keith Lerner, chief investment officer at Truist Wealth, noted that strong runs often invite brief consolidation even when underlying economic data remain supportive. The current environment shows solid corporate earnings growth in many sectors outside the most expensive technology names, which could limit the scope of any near-term retreat.

Analysts tracking the semiconductor supply chain pointed out that Broadcom's results reflected uneven demand patterns rather than a broad collapse in spending. Some clients appear to be pausing purchases after earlier inventory builds, while others continue to commit capital to artificial-intelligence infrastructure. That divergence has produced volatility within the group even as longer-term forecasts for data-center spending stay elevated.

The broader market reaction also illustrated how geopolitical risks can amplify moves that originate in individual company reports. Energy and defense-related shares showed relative strength in early trading, offsetting some of the losses in growth-oriented technology names. Treasury yields remained in a narrow range, suggesting investors have not yet shifted toward large-scale defensive positioning.

Volume in premarket futures stayed moderate, indicating that many participants preferred to wait for additional economic data and corporate updates before committing to new positions. The upcoming employment report and further inflation readings are expected to provide clearer signals on whether the Federal Reserve will maintain its current policy stance through the summer.

While Thursday's action marked the first weekly decline for the S&P 500 in some time, the index remains well above levels seen at the start of the year. Market breadth outside the largest technology companies has improved gradually, a development some strategists view as a constructive sign for sustained gains if earnings momentum holds.