This content was published on
June 4, 2026 - 12:16
5 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 1.1%. 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 was little changed as software firms shielded tech from weakness in hardware stocks.Concern over the AI trade threatens to dent a record-breaking rally that has seen global gauges 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 1.2% lower at about $96.60 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 two basis points to 4.48%. The dollar fell 0.1%. 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 an Israeli-Beirut ceasefire. The issue could remain a key sticking point in talks to end the Middle East war, while Iran said there had been no recent progress over a deal.The standoff has seen markets increasingly bet that oil-driven inflation pressures could trigger a US interest rate hike as soon as October. The upward trend in bond yields could also deflate the euphoria in stock markets, said Benoit Peloille, chief investment officer at Natixis Wealth Management.“A valuation correction doesn’t need to wait for earnings to deteriorate,” Peloille said. Growth stocks, which investors value on their long-term prospects, are particularly vulnerable when bonds offer attractive risk-free yields, he said.Also in focus was confirmation from SpaceX that it is seeking to raise $75 billion in an initial public offering to fund expansion of its AI, rocket launch and satellite infrastructure. Based on its filing with the US Securities and Exchange Commission, SpaceX would have a market value of almost $1.77 trillion.What Bloomberg Strategists Say:“Confirmation that SpaceX is seeking to raise $75 billion in an IPO will also act a trigger for near term rotation away from AI themes. Investors are also bracing for more big cash calls as Anthropic and OpenAI jostle for their own place on the IPO launchpad. This looks like the start of a beauty parade to find the long-term winners and losers in the AI journey.”— Mark Cranfield, Markets Live strategist. Click here for the full analysis.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:StocksS&P 500 futures fell 0.4% as of 6:11 a.m. New York time Nasdaq 100 futures fell 1.1% Futures on the Dow Jones Industrial Average rose 0.5% The Stoxx Europe 600 was little changed The MSCI World Index was little changed CurrenciesThe Bloomberg Dollar Spot Index fell 0.1% The euro rose 0.3% to $1.1628 The British pound rose 0.1% to $1.3437 The Japanese yen rose 0.1% to 159.88 per dollar CryptocurrenciesBitcoin fell 3.3% to $62,761.96 Ether fell 1.5% to $1,751.87 BondsThe yield on 10-year Treasuries declined two basis points to 4.47% Germany’s 10-year yield was little changed at 3.04% Britain’s 10-year yield declined one basis point to 4.92% CommoditiesWest Texas Intermediate crude fell 1.2% to $94.91 a barrel Spot gold rose 0.8% to $4,469.43 an ounce This story was produced with the assistance of Bloomberg Automation.–With assistance from Neil Campling, Henry Ren, James Hirai and Julien Ponthus.©2026 Bloomberg L.P.
