U.S. stock index futures moved lower on Wednesday evening, with technology and chipmaking shares leading losses after Broadcom's quarterly results and forward AI revenue guidance failed to meet market hopes. Investors were also on edge over recent military activity between the United States and Iran and uneven signs of diplomatic progress toward a ceasefire.
By 19:33 ET (23:33 GMT), S&P 500 Futures were down 0.5% at 30,410.0 points. Nasdaq 100 Futures fell 0.7% to 30,406.50 points, while Dow Jones Futures held near 50,791.0 points.
Broadcom headlines chip sector weakness
Broadcom Inc slipped about 12% in aftermarket trading, sparking broader weakness among chipmakers after reporting second-quarter revenue of $22.19 billion, which missed Reuters estimates of $22.27 billion. The company left its current-quarter AI chip revenue target unchanged at $16 billion, below market expectations of $16.36 billion. The firm’s earnings per share did beat expectations, but the revenue and guidance outcome opened the stock to profit-taking following a run of record highs ahead of the report.
The company also faces competitive pressure from rivals such as Marvell Technology Inc and supply constraints tied to limited foundry capacity at major manufacturers including TSMC and Samsung Electronics Co Ltd, a dynamic highlighted as a headwind in the wake of the report.
Spillover to other chip names
Broadcom’s after-hours decline spilled into other major semiconductor names. Intel Corporation, Micron Technology Inc, and AMD each fell between 1.5% and 2.2% after-hours, while NVIDIA was flat in aftermarket trade after a 3.6% decline during Wednesday’s regular session. Observers noted that a broader rally in chipmaking stocks appeared to be cooling this week as investors locked in gains after strong sector performance earlier in the year.
Indexes retreat from record highs amid geopolitical jitters
Wall Street's main indexes slipped from record levels on Wednesday as a mix of profit-taking and heightened concerns over the Iran conflict dampened sentiment. The S&P 500 fell 0.7% to close at 7,554.37 points. The NASDAQ Composite dropped 0.9% to 26,853.98 points, and the Dow Jones Industrial Average declined 1.2% to 50,688.43 points.
Markets were unsettled after renewed military exchanges between the U.S. and Iran, with the two trading air strikes for the third time in the past week. Progress toward a ceasefire or peace deal remained unclear after reports this week indicated Iran had stepped back from indirect negotiations with the United States. Despite repeated assurances from U.S. officials that talks were continuing and that a deal was close, markets remained sensitive to the military developments. Oil prices rebounded sharply over the week as well, reflecting the heightened geopolitical risk.
Context and market posture
Traders' reactions combined near-term earnings and guidance news with geopolitical risk, producing pressure on sectors most directly exposed to technological demand cycles and supply-chain bottlenecks. Chipmakers, which had amassed strong gains leading into the week, were particularly vulnerable to profit-taking after Broadcom’s results tempered expectations for near-term AI-related revenue growth.
For now, market participants appear to be balancing firm fundamentals in core businesses against the immediate impact of guidance misses, competitive dynamics, supply constraints at foundries, and the risk of further geopolitical escalation. These factors kept risk assets on edge during the session and shaped the intraday moves across major U.S. equity benchmarks.