This content was published on
June 4, 2026 - 11:27
4 minutes
(Bloomberg) — Stocks fell after a disappointing outlook from Broadcom Inc. triggered doubts that the blistering rally in technology shares had gone too far.Futures for the S&P 500 dipped 0.4%, while those for the Nasdaq 100 dropped 1.2%. Broadcom, which added around $150 billion in market value just this week, slumped 13% in US premarket trading after its forecast for artificial-intelligence semiconductor revenue in the current quarter fell short of expectations.The downturn extended to other corners of the tech trade, with cybersecurity firm Crowdstrike Holdings Inc. dropping 11% even after raising its revenue forecast. The sector also fueled losses in Asia, where South Korea’s Kospi index fell 1.8%. Europe’s benchmark retreated 0.1% as software firms helped to shield tech from weakness in hardware stocks.Concern over the AI trade threatens to dent a record-breaking rally that has seen stocks shake off worries about the biggest disruption to oil markets in history. The risk-off tone comes even as Brent heads for its first daily retreat of the week, trading 1.5% lower at about $96.30 a barrel.“Valuations are looking slightly frothy in pockets of the market which have seen the strongest gains over recent weeks,” said Wolf von Rotberg, equity strategist at Bank J Safra Sarasin. “A leadership change in equities is not unlikely at this point, with less powerful drivers than tech taking over.”Treasuries steadied after Wednesday’s pullback, with the 10-year yield down one basis point to 4.48%. The dollar barely budged. Bitcoin briefly hit a four-month low as the cryptocurrency headed for its longest streak of losses since August.“The big issue is that as Bitcoin falls below its estimated mining cost ($60,000 to $70,000), the last obvious valuation anchor is disappearing,” said Ipek Ozkardeskaya, senior analyst at Swissquote.While stocks were under pressure, oil and bonds found some respite even as fighting persisted in Lebanon despite Washington’s declaration of a ceasefire between Israel and the country. The issue could remain a key sticking point in talks to end the war in the Middle East, while Iran said there had been no recent progress over an interim deal.“A significant push higher in global equities from current levels would require a near-term resolution of the situation in the Strait of Hormuz, which appears unlikely,” Von Rotberg said. “A lot of optimism appears to be priced once again, which limits the upside for global equities in the near term.”Corporate Highlights:Taiwan Semiconductor Manufacturing Co. Chief Executive Officer C.C. Wei said the company’s global chip supply will fall short of AI-fueled demand for years to come, sustaining revenue growth for the firm. Partners Group Holding AG said it is ready to gate other evergreen funds amid rising pressure from investors to access liquidity, a day after the announcement of a first such move prompted a slump in the Swiss firm’s stock. JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon plans to discuss the upcoming SpaceX initial public offering with thousands of the bank’s high-net-worth clients this week. Some of the main moves in markets:StocksThe Stoxx Europe 600 fell 0.1% as of 10:22 a.m. London time S&P 500 futures fell 0.4% Nasdaq 100 futures fell 1.2% Futures on the Dow Jones Industrial Average rose 0.2% The MSCI Asia Pacific Index fell 1.7% The MSCI Emerging Markets Index fell 1.7% CurrenciesThe Bloomberg Dollar Spot Index was little changed The euro rose 0.2% to $1.1620 The Japanese yen rose 0.1% to 159.87 per dollar The offshore yuan was little changed at 6.7768 per dollar The British pound rose 0.1% to $1.3435 CryptocurrenciesBitcoin fell 2.9% to $63,023.22 Ether fell 1.5% to $1,752.36 BondsThe yield on 10-year Treasuries declined one basis point to 4.48% Germany’s 10-year yield was little changed at 3.04% Britain’s 10-year yield was little changed at 4.92% CommoditiesBrent crude fell 1.5% to $96.33 a barrel Spot gold rose 0.7% to $4,464.16 an ounce This story was produced with the assistance of Bloomberg Automation.–With assistance from Neil Campling and Henry Ren.©2026 Bloomberg L.P.
