US Futures Dip as Broadcom's Weak Outlook Hits Chip Stocks
US stock futures dipped on Thursday night following a weaker-than-expected outlook from Broadcom Inc. (AVGO), raising concerns about the semiconductor sector's recent rally. The Dow, S&P 500, and Nasdaq 100 futures all declined, with the Nasdaq 100 futures leading the drop at 1.28%. Broadcom's shares fell over 12% after its earnings report, and the weakness spread to other chip stocks like Micron Technology (MU) and Advanced Micro Devices (AMD).
Meanwhile, investors rotated into non-technology stocks, with UnitedHealth Group (UNH) gaining more than 5%, along with Goldman Sachs (GS), American Express (AXP), and JPMorgan Chase (JPM). Geopolitical tensions also weighed on markets after Hezbollah rejected a proposed ceasefire in Lebanon, adding to uncertainty in the Middle East.
Investors are now focused on Friday's nonfarm payrolls report, which could provide key insights into job growth and wage trends. Among individual stocks, Lululemon Athletica (LULU) dropped over 11% in after-hours trading due to disappointing earnings, while Netflix (NFLX) drew attention ahead of its annual shareholder meeting. Keel Infrastructure (KEEL) fell nearly 9% after announcing a $350 million convertible senior notes offering, and Merlin Inc. (MRLN) surged over 31% following a successful design review for its C-130J autonomy program.
Globally, oil futures were mixed, with Brent crude rising slightly while WTI crude fell. Asian markets opened lower on Friday, reflecting the cautious sentiment from US trading.