US equities fell after Broadcom’s AI revenue forecast missed estimates, sparking a 1.25% drop in the Magnificent 7 and broader market declines.
The S&P 500 and NASDAQ ended a nine-day winning streak, dropping 0.74% and 0.89% respectively, as higher oil prices, hawkish Fed expectations, and AI-related disappointments weighed on sentiment. Broadcom’s weaker-than-expected AI chip revenue forecast triggered a 13% overnight plunge in its shares, dragging down tech heavyweights.
The equal-weighted S&P 500 fell 0.42%, while the Magnificent 7 underperformed with a 1.25% decline. European markets mirrored the downturn, with the CAC 40 and DAX sliding 0.71% and 1.31%. The Philly Semiconductor index bucked the trend, rising 1.39% to a record high.
Risk-off sentiment extended to Asian equities and Bitcoin, reflecting broader market caution amid shifting rate expectations and geopolitical uncertainties.