US stock futures were mixed on Thursday as a steep premarket drop in Broadcom dragged technology shares lower and interrupted Wall Street’s record-setting run.
Nasdaq 100 futures led declines, while Dow contracts edged higher.
The pullback followed a powerful advance to record highs and came as investors assessed fresh geopolitical risks, upcoming labour-market data and comments from Federal Reserve officials.
With chip stocks under pressure and the S&P 500’s nine-week winning streak at risk, traders are watching whether earnings expectations, Fed policy signals and a major IPO roadshow can shape sentiment before the opening bell.
5 things to know before Wall Street opens
1. Futures are mixed as tech loses momentum
US equity futures pointed in different directions before the open, with technology shares leading the decline.
Futures tracking the S&P 500 slipped 0.35% and Nasdaq 100 futures fell 1%, while Dow Jones futures outperformed with a 0.39% gain.
The move marked a pause after a strong rally that had lifted major indexes to record highs. The advance has stalled this week, putting the S&P 500’s run of nine consecutive weekly gains at risk.
2. Broadcom’s revenue miss hits chip sentiment
Broadcom was the main drag on the technology sector after its results disappointed investors.
The shares slumped 14% in premarket trading after a revenue miss.
The company kept its long-range forecast for $100 billion in sales from AI chips, but that was not enough to satisfy investors after a nearly 55% gain in the stock this quarter.
If the premarket losses hold, more than $270 billion in market value could be erased.
3. Jobs data and Fed speakers are in focus
Economic data remained central to the market’s policy outlook.
An ISM survey showed the US services sector expanded in May.
Weekly jobless claims due later Thursday will be the final major labour-market reading before Friday’s broader monthly employment report.
The data will be closely watched for clues on whether the economy remains strong enough to keep inflation pressure alive.
A resilient labour market could strengthen the case for the Federal Reserve to keep policy tighter for longer.
4. CrowdStrike falls while SpaceX roadshow begins
Other individual stocks and deal activity were also in focus.
CrowdStrike fell 10% after reporting an increase in first-quarter operating expenses.
The move added to the cautious tone in technology, where investors are watching whether fast-growing companies can control costs while maintaining expansion.
Meanwhile, an investor roadshow for Elon Musk-led SpaceX begins on Thursday ahead of its June 12 market debut.
5. Geopolitics adds to the cautious tone
Geopolitical risk remained another source of uncertainty for markets.
A recent flare-up in US-Iran hostilities has clouded sentiment. Although a ceasefire was reached in early April, talks to end the war and reopen the Strait of Hormuz have made little progress.
That backdrop threatens to keep oil prices elevated and feed inflation concerns.
Higher energy prices could complicate the Fed’s policy path by adding pressure to headline inflation at a time when markets are already debating the timing and direction of interest-rate moves.
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