US Stock Market Sees Moderate Decline Amid Tech Sector Sell-Off, Brent Prices Retreat
US Stock Futures Weaken as Broadcom Disappoints
US stock futures remained under pressure for the second straight session, as the record-breaking rally in technology stocks came to a halt following a disappointing outlook from Broadcom. The company's forecast for artificial intelligence semiconductor revenue in the current quarter fell short of market expectations, triggering a broader sell-off in technology stocks.
Futures for the S&P 500 dipped 0.4%, while those for the Dow Jones Industrial Average dropped 0.3%. In Wednesday's regular session, the Dow fell 1.21%, the S&P 500 lost 0.74%, and the Nasdaq Composite declined 0.89%. Broadcom, which added nearly $150 billion in market value just this week, slumped 13% in US premarket trading.
| Company | Previous Close | Current Close | Percentage Change |
|---|---|---|---|
| Broadcom | $520.45 | $452.55 | -13.0% |
| CrowdStrike Holdings | $195.23 | $173.29 | -11.0% |
| Intel | $66.45 | $64.79 | -2.3% |
| Advanced Micro Devices | $142.10 | $137.89 | -2.9% |
| Palantir Technologies | $23.45 | $22.95 | -1.5% |
| Qualcomm | $154.90 | $151.69 | -1.9% |
| Arm Holdings | $60.25 | $57.69 | -4.3% |
| PVH | $83.45 | $66.39 | -20.6% |
Read also: Nifty Index Climbs 0.3 Percent as Global Oil Prices Decline Sharply
The weaker guidance triggered a broader sell-off in technology stocks, dragging Nasdaq futures down by more than 1%. The recent escalation in the Middle East had caused tensions to remain elevated, but a conditional ceasefire reportedly emerged between Israel and Lebanon, reviving hopes for progress in negotiations aimed at resolving the Iran conflict and reopening the Strait of Hormuz.
US President Donald Trump expressed optimism that negotiations with Iran could be achieved as early as this weekend. Iran also said that talks with the US were continuing, although it stated that no meaningful progress had been made so far. Meanwhile, SpaceX set its IPO price at $135 per share, valuing the company at more than $1.75 trillion.
Crude oil prices slipped in trade, with Brent falling $3 a barrel to $94 per barrel and WTI falling by nearly $4 to $92, following a conditional ceasefire agreement between Israel and Lebanon. Although prices eased, Brent is still up 4% this week, while WTI has gained around 7%.
Investor Takeaway
Investors should be cautious of the tech sector sell-off and its potential impact on the broader market.
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