Nasdaq futures drop after Broadcom earnings

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Nasdaq futures declined on Thursday, June 4, 2026, after semiconductor giant Broadcom delivered a weaker-than-expected outlook that raised doubts over the sustainability of the artificial intelligence-driven rally in global equity markets.

Broader U.S. equity futures showed a mixed performance, with Dow futures edging higher while S&P 500 futures slipped, as investors balanced tech-sector weakness against ongoing geopolitical uncertainty in the Middle East.

Broadcom disappoints despite strong revenue growth

Broadcom posted strong quarterly results but failed to meet elevated market expectations, triggering a sharp negative reaction in after-hours and premarket trading.

• Revenue jumped 48% in Q2, driven by strong AI chip demand
• Shares fell after guidance failed to deliver expected upside revisions
• The company maintained its long-term 2027 AI revenue outlook above $100 billion
• Investors reacted to the absence of a typical “beat-and-raise” outlook

The disappointment weighed on sentiment across the semiconductor sector, dragging peers including major chipmakers lower in premarket trading.

Tech sector weakness spreads across markets

Losses in Broadcom spilled over into broader technology names, with pressure seen across the AI and semiconductor space as investors reassessed high valuations built during the recent rally.

Market analysts noted that expectations had been extremely elevated following a strong earnings season across the sector, making any lack of upside momentum enough to trigger profit-taking.

Geopolitical tensions keep markets cautious

Markets also remained sensitive to developments in the Middle East, as investors monitored ongoing tensions alongside fragile diplomatic progress.

• Renewed ceasefire agreement between Israel and Lebanon supported cautious optimism
• Ongoing U.S.–Iran tensions continued to weigh on risk sentiment
• Energy markets reacted with volatility amid uncertainty over regional stability

These developments added to investor caution, particularly in risk-sensitive assets such as technology stocks.

Energy prices ease and yields soften

Oil prices moved lower during the session as geopolitical risk premiums eased slightly following diplomatic developments.

• Brent crude fell around 1.5%
• WTI crude dropped about 1.2%
• U.S. Treasury yields eased modestly, reflecting softer risk sentiment

Despite the pullback, energy prices remain elevated compared to pre-conflict levels, keeping inflation concerns in focus for markets.