* Futures: Dow up 0.4%, S&P down 0.49%, Nasdaq down 1.2%
* U.S. chipmakers dip after Broadcom's ( AVGO ) quarterly revenue
miss
* CrowdStrike ( CRWD ) slumps on rise in quarterly operating
expenses
* Weekly jobless claims data, Fed speakers on deck
(Updates with prices, analyst comment)
By Medha Singh and Twesha Dikshit
June 4 (Reuters) - S&P 500 and Nasdaq 100 futures fell
on Thursday, as Broadcom's ( AVGO ) revenue miss pressured chip stocks,
while equity investors took a breather after a strong rally to
record highs.
Broadcom ( AVGO ) shares slumped 13.5% in premarket trading
after the chipmaker also stuck to its long-range forecast of
$100 billion in sales from its AI chips. The stock, which has
climbed nearly 55% this quarter, could shave off over $270
billion in market value, if losses sustain through the session.
"Broadcom ( AVGO ) is finding that meeting and even slightly beating
forecasts is not enough when the market is holding it to such a
high standard," said Dan Coatsworth, head of markets at AJ Bell.
Other chipmakers also fell with Micron Technology ( MU ),
Advanced Micro Devices ( AMD ), Marvell Technology ( MRVL ) and
Qualcomm ( QCOM ) down between 4.1% and 7.4%.
The record-setting rally on Wall Street has stalled this
week, putting at risk the series of nine straight weekly gains
for the S&P 500, as investors weighed a renewed flare-up in
hostilities between the United States and Iran.
Although the two sides agreed to a ceasefire in early April,
talks to end the war and reopen the Strait of Hormuz have made
little progress, threatening to keep oil prices elevated and
stoke inflation.
"The shift feels less like a fundamental change in narrative
and more like a combination of profit-taking, stretched
positioning and a reassessment of geopolitical risks after weeks
of almost uninterrupted gains," said Daniela Hathorn, senior
market analyst at Capital.com.
At 06:47 a.m. ET, Dow E-minis were up 204 points, or
0.4%, S&P 500 E-minis were down 36.75 points, or 0.49%,
and Nasdaq 100 E-minis were down 369 points, or 1.2%.
An ISM survey on Wednesday showed the U.S. services sector
expanded in May. Weekly jobless claims data, due later in the
day, will be the last economic reading before Friday's broader
monthly employment report.
The data will give new Federal Reserve Chairman Kevin Warsh
a fresh read on the U.S. labor market as he heads into his first
policy meeting this month, at a time when U.S. consumers are
under strain from Iran war-driven price pressures.
Traders see a 75% chance of a 25-basis-point rate hike
before the end of the year, LSEG data showed.
Federal Reserve Bank of Richmond President Thomas Barkin and
San Francisco Fed President Mary Daly are also due to speak on
Thursday, among the last appearances before the Fed's
pre-meeting blackout period.
Among market movers, CrowdStrike ( CRWD ) slumped 10.4%
after the cybersecurity company reported a rise in its
first-quarter operating expenses.
An investor roadshow for Elon Musk-led SpaceX
begins on Thursday ahead of its market debut on June 12. It aims
to raise $75 billion in a record IPO that would value it at
$1.75 trillion and rank it among the top 10 U.S.-listed firms.
(Reporting by Medha Singh and Twesha Dikshit in Bengaluru;
Editing by Shinjini Ganguli and Devika Syamnath)