US Pre-Market: Nasdaq Futures Lead Declines, Broadcom Slump Drags Down Chip Stocks

TradingKey - In U.S. pre-market trading on Thursday, June 4, the three major stock index futures diverged, with Nasdaq 100 futures leading the decline. Broadcom's earnings failed to meet high market expectations for AI chips, weighing down the semiconductor and AI infrastructure sectors. As of press time, Dow futures rose 0.79%, S&P 500 futures fell 0.4%, and Nasdaq 100 futures fell 1.31%.

Performance of U.S. stock index futures, Source: Investing

In commodities, WTI ( USOIL) crude oil fell approximately 1.98% to $94.31; Brent crude fell about 1.62% to $95.79. Spot gold ( XAUUSD) rose 1.77% to around $4,513. Bitcoin ( BTCUSD) briefly dropped below $62,000 intraday and was last trading at $62,516, a decline of 2.5%, while Ethereum ( ETHUSD) saw a larger decline of 3.55%, as crypto assets continued their weakness.

Unusual Market Activity

Broadcom ( AVGO) tumbled more than 15% in pre-market trading. The company's adjusted EPS for the second fiscal quarter was $2.44, beating the market estimate of $2.39; revenue was $22.19 billion, also slightly above expectations. However, the market's reaction to its AI chip revenue and long-term sales targets was tepid, causing the stock price to drop significantly and weighing on the AI semiconductor sector.

Chip stocks broadly declined in pre-market trading. Micron ( MU) fell more than 7%, Super Micro Computer ( SMCI) dropped 7%, Qualcomm ( QCOM) fell more than 4%, AMD and Intel ( INTC) both fell more than 4%, while Nvidia ( NVDA) dropped nearly 1%. Following a continuous rally in AI hardware stocks, Broadcom's earnings report served as a catalyst for profit-taking in the sector.

CrowdStrike ( CRWD) tumbled more than 10% in pre-market trading. The company's first fiscal quarter EPS was $1.10, exceeding the market expectation of $1.07; revenue was $1.39 billion, higher than the projected $1.36 billion. However, operating expenses increased by 15% year-over-year, reflecting its continued investment in AI and product development, sparking market concerns over margin pressure.

Market Highlights

SpaceX launches its IPO roadshow, with a target valuation potentially reaching $1.75 trillion. Elon Musk's SpaceX plans to conduct an initial public offering this month, intending to issue approximately 556 million shares at $135 per share to raise up to $75 billion under the ticker SPCX. If the listing proceeds successfully, the deal will become one of the largest IPOs in history and could drive increased interest in assets related to aerospace, satellite communications, and AI infrastructure.

Honeywell's quantum computing subsidiary Quantinuum lands on Nasdaq. Quantinuum raised $1.68 billion after expanding its U.S. IPO size, and the stock is expected to begin trading on the Nasdaq Global Market on Thursday under the ticker "QNT." As the investment boom in AI and high-performance computing continues, the quantum computing sector has once again become a focal point of market attention.

IBM Launches enterprise AI collaboration project with Google Cloud. IBM and Google Cloud announced the formation of a new Google Cloud Practice, aimed at helping enterprises put AI applications into production faster and modernize core systems. The project will rely on IBM's consulting team and Google Cloud technology to serve hybrid cloud, AI agents, and enterprise digital transformation needs.

Nvidia CEO Jensen Huang departs for South Korea after concluding his Taiwan trip. **Huang has concluded his schedule attending GTC Taipei and Computex 2026 in Taiwan and set off for South Korea today, where he is expected to begin an approximately four-day industry visit starting June 5. This South Korea trip will focus on AI semiconductors, HBM (High Bandwidth Memory), robotics, and physical AI ecosystem cooperation, with the market closely monitoring his meeting arrangements with SK Hynix, Samsung Electronics, LG, Hyundai Motor, NAVER, and South Korean AI/robotics startups.

Key Data/Events Preview

At 8:30 AM ET on June 4, the U.S. will release last week's initial and continuing jobless claims.

On June 4 ET, Richmond Fed President Barkin and San Francisco Fed President Daly will deliver speeches.

After the market close on June 4 ET, Lululemon ( LULU) will report earnings; Ciena ( CIEN) will report earnings and hold an earnings call before the market opens.