* Futures: Dow up 0.81%, S&P down 0.36%, Nasdaq down
1.16%
* 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 prices)
By Medha Singh and Twesha Dikshit
June 4 (Reuters) - S&P 500 and Nasdaq 100 futures were
set to fall at the open 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 15% in premarket trading after
the chipmaker also stuck to its long-range forecast of $100
billion in sales from its AI chips. The stock has climbed nearly
55% this quarter and could shed nearly $350 billion in market
value if losses hold 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 in tandem, with Qualcomm ( QCOM )
and Advanced Micro Devices ( AMD ) down about 4% each, while
Micron Technology ( MU ) and Marvell Technology ( MRVL ) fell
around 7%.
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 08:00 a.m. ET, S&P 500 E-minis were down 27.5 points,
or 0.36% and Nasdaq 100 E-minis were down 355.25 points,
or 1.16%.
Dow E-minis were up 414 points, or 0.81%, buoyed by a 3%
gain in UnitedHealth ( UNH ) after Bank of America raised its
rating on the healthcare conglomerate's shares to "buy."
Wednesday's ISM survey 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 9.5% 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.