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.
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%.
, which added nearly $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 market expectations.
The weaker guidance triggered a broader sell-off in technology stocks, dragging Nasdaq futures down by more than 1%. Even as tensions in West Asia remained elevated, Wall Street had scaled multiple record highs in recent weeks, powered by a blistering rally in technology and chip stocks.
Further, the upbeat first-quarter performance and stronger outlook from several Magnificent Seven companies had revived expectations that AI-led growth would continue to expand in the coming quarters, keeping investor demand for these stocks elevated.
Following the recent escalation in the Middle East, a conditional , reviving hopes for progress in negotiations aimed at resolving the Iran conflict and reopening the Strait of Hormuz. However, there was no immediate indication that Hezbollah had accepted the terms of the agreement.
Earlier this week, the fragile ceasefire between Iran and the US came under pressure after both nations exchanged attacks, although leaders from both sides expressed optimism that negotiations were still underway.
US President Donald Trump said on Wednesday that progress in negotiations with Iran could be achieved as early as this weekend. Iran also said that talks with the US were continuing, although it said no meaningful progress had been made so far.
Meanwhile, at $135 per share, valuing the company at more than $1.75 trillion.
Crude oil eases after three-day rally
After remaining higher for three straight sessions, 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%.
Brokerage firm Kotak Securities said supply concerns were reinforced by a sixth consecutive weekly decline in crude inventories at Cushing, Oklahoma, bringing stock levels closer to minimum operating levels. In addition, the Strait of Hormuz, which normally facilitates nearly one-fifth of global crude trade, remains a major source of supply risk.
The brokerage added that while a lasting ceasefire and the reopening of the Strait of Hormuz could ease market tightness, falling inventories, unresolved geopolitical tensions, and fragile diplomacy continue to underpin oil prices.
The near-term outlook remains constructive unless a durable regional peace agreement materially improves global supply flows.
US stocks in focus today
The weak outlook from . dragged several other technology stocks lower, with cybersecurity firm CrowdStrike Holdings falling 11% despite raising its revenue forecast.
Other major tech stocks also remained under pressure, including Intel, which slipped 2%, Advanced Micro Devices down 2.9%, Palantir Technologies declining 1.5%, Qualcomm falling 1.9%, and Arm Holdings dropping 4.3%.
Meanwhile, PVH, the parent company of Tommy Hilfiger and Calvin Klein, tumbled more than 20% after reiterating its full-year earnings guidance.
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