Nasdaq futures lead declines after Broadcom drop

On June 4, 2026, S&P 500 and Nasdaq 100 futures declined following a revenue miss by Broadcom, which saw its stock drop 12.4% and could impact over $270 billion in market value. The market's recent rally appears to be stalling amid a ceasefire situation between the U.S. and Iran, affecting oil prices and inflation fears. Economic data is anticipated, including an ISM survey indicating expansion in the U.S. services sector and upcoming jobless claims. Trader sentiment suggests a 75% probability of a Fed rate hike later this year. Notable market movements included CrowdStrike dropping 10% due to rising expenses and SpaceX commencing an investor roadshow ahead of a record IPO.

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Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., June 3, 2026. REUTERS/Brendan McDermid Purchase Licensing Rights, opens new tab

Summary
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Futures: Dow up 0.24%, S&P down 0.49%, Nasdaq down 1.23%

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 (AVGO.O), opens new tab shares slumped 12.4% 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.

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"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 AJ Bell, head of markets Dan Coatsworth.

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.

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At 05:16 a.m. ET, Dow E-minis were up 120 points, or 0.24%, and S&P 500 E-minis were down 37 points, or 0.49%. Nasdaq 100 E-minis were ‌down ⁠376 points, or 1.23%.

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 (CRWD.O), opens new tab slumped 10% after the cybersecurity company reported a rise in its ⁠first-quarter operating expenses.

An investor roadshow for Elon Musk-led SpaceX (SPCX.O), opens new tab 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 in Bengaluru; Editing by Shinjini Ganguli

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