(The opinions expressed here are those of the author, a

columnist for Reuters.)

By Mike Dolan

June 4 (Reuters) -

What matters in U.S. and global markets today

By Mike Dolan, Editor-at-Large, Finance and Markets

The S&P 500 failed to clock its 10th straight daily gain on

Wednesday and there are some clouds gathering in markets.

Despite the frenzy in the red-hot chip sector, Broadcom, now the

world's sixth-biggest company by market cap, stumbled after its

latest earnings release.

The chipmaker's stock dropped more than 13% overnight following

a slight miss on sales and revenue forecasts. That reaction

speaks to the high bar companies must now meet to impress

markets amid the AI boom. In the words of one analyst, the

market now demands perfection.

I'll get into that and more below.

But first, check out my latest column on why Kevin Warsh's Fed

could catch investors off guard.

And listen to the latest episode of the Morning Bid daily

podcast. Subscribe to hear Reuters journalists discuss the

biggest news in markets and finance seven days a week.

SUMMER CLOUDS

Broadcom's miss also speaks to the rising competition in the

sector, where shares of chip designers like Marvell Technology

have zoomed higher over the past week. Marvell's shares touched

a record high after Nvidia CEO Jensen Huang on Tuesday stated it

is likely to become a trillion-dollar company.

Meantime, the broader economy has shown few signs of

slowing, fuelling hawkish bets on the Federal Reserve's next

move, with futures now seeing almost a 50% chance of a rate rise

as soon as October.

The Fed's so-called Beige Book, which lays out the economic

conditions facing policymakers when they meet this month, showed

activity has picked up even as energy price pressures have

become pervasive.

That was clear in the recently released ISM business surveys

for May, as well as labor market numbers like May's

forecast-beating 122,000 rise in ADP private sector payrolls.

The May employment report will be released tomorrow, but

overall U.S. economic surprise indexes are running at their most

positive in three years.

There's been little relief on the energy front, meantime, with

oil prices still elevated as we enter a crunch month for global

crude supplies. And despite reports of a ceasefire between

Israel and Lebanon boosting hopes for a broader Iran deal,

fighting continued in southern Lebanon on Thursday.

In otherwise calm currency markets, the softening Japanese yen

continued to flirt with the 160-per-dollar level, even in the

face of warnings from BOJ sources that an interest rate rise is

likely this month - unless a sharp escalation in the Middle East

conflict upends markets.

And while investors await a wave of mega IPOs this summer, there

have been renewed jitters in private equity and credit markets.

Swiss asset manager Partners Group is facing heavy redemption

requests from some of its funds and will cap withdrawals from

its $16 billion U.S.-based fund after they exceeded the 5%

quarterly limit.

Moving into Thursday's open, U.S. stock index futures were in

the red while oil prices and Treasury yields slipped back

slightly from Wednesday's highs. And with regular tech stocks

now recording extraordinary short-term moves that once seemed

the preserve of frothier crypto markets, bitcoin seems almost

forgotten. It's shed almost 20% since mid-May and fell to its

lowest level since February on Wednesday.

Chart of the day

Even though a ceasefire deal between Israel and Lebanon

encouraged hopes for a broader agreement to end the U.S.-Israeli

war with Iran, fighting continued both there and in the Gulf

region.

Global crude prices remain about 35% higher than before the war

and concerns about dwindling reserves are rising. U.S. crude

stockpiles fell by 8 million barrels to 434 million barrels in

the week ended May 29, the Energy Information Administration

said - twice the draw analysts had expected.

Today's events to watch

* U.S. weekly jobless claims (8:30 a.m. EDT), Q1

productivity and costs (8:30 a.m. EDT)

* Fed's Michelle Bowman, Richmond Fed's Thomas Barkin,

Kansas Fed's Jeffrey Schmid and San Francisco Fed's Mary Daly

all speak

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Opinions expressed are those of the author. They do not reflect

the views of Reuters News, which, under the Trust Principles, is

committed to integrity, independence, and freedom from bias.