As Broadcom Tests AI Trade, Nasdaq Futures Drop – Europe Market Wrap

Global equities retreated as concerns emerged that the AI-driven rally may have become overstretched, following a disappointing outlook from Broadcom. Nasdaq 100 futures fell 1.3% and S&P 500 futures slipped 0.5%, with Broadcom tumbling 13% in premarket trading after its forecast for AI semiconductor revenue failed to meet elevated investor expectations.

The weakness spread across the technology sector, with CrowdStrike falling 10% despite raising its revenue outlook. The negative sentiment also weighed on Asian markets, where South Korea’s KOSPI declined 1.8%, while Europe’s regional benchmark slipped 0.2%.

The pullback raises questions about the sustainability of the powerful AI-led advance that has driven global equities to record highs in recent months. Investors appeared willing to take profits after a period of exceptional gains, despite easing concerns in energy markets.

Oil prices edged lower, with Brent crude on track for its first decline of the week, falling 1.4% to around $96.40 per barrel. The move offered some relief after recent volatility linked to disruptions in global energy markets.

In fixed income, Treasuries stabilized following Wednesday’s selloff. The 10-year Treasury yield slipped 2 bps to 4.47%, while the US Dollar eased 0.1%. Meanwhile, Bitcoin briefly touched a four-month low, extending its losing streak to the longest since August as risk appetite weakened across markets.