US EQUITY OPEN: Tech hit after AVGO earnings

OPEN: Nasdaq 100 lags, with Technology the distinct sectoral laggard following Broadcom’s result, which is leading to a chip rout, after the name missed on revenue, as did next quarter semiconductor revenue from AI guidance. As a result, the semiconductor ETF is down c. 4.5%. All other sectors, aside from Energy, reside in the green, with Health leading the gains. Away from Broadcom, which is dominating the equity space, the crude complex is lower by c. USD 3/bbl, with focus continuing to reside around any US/Iran update – Trump said US is "in the middle of my final negotiations to end the War", while Israel and Lebanon agreed to a ceasefire in US-brokered talks, with the ceasefire contingent on Hezbollah's evacuation from the Litani. The Dollar is weaker, with G10 peers gaining across the board as the Swissy and Kiwi outperform, with the latter likely rebounding after recent underperformance. Treasuries are gaining across the curve, while precious metals reside in the green with spot silver outperforming its counterpart. On the US data docket, Challenger job cuts printed 97.006k (prev. 93.387k), while Revelio Labs Nonfarm Payrolls for May rose 123.7k, from April’s +66.4k. Initial jobless claims jumped to 225k from 212k, above the expected 213k and outside the top end of the forecast range. Ahead, Fed’s Bowman is at the top of the hour, ahead of Daly later in the session, with participants awaiting US NFP on Friday.

STOCK SPECIFICS:

• Broadcom (AVGO): Rev. missed as did next Q semiconductor rev. from AI guidance; as a result, MU, AMD, INTC, QCOM, and MRVL all under pressure.
• SK Hynix told investors this week its proposal to list in the US has received a very positive response from shareholders.
• CrowdStrike (CRWD): Q metrics narrowly beat & underwhelming guidance, that was only roughly in line.
• Futu Holdings (FUTU) to reportedly restrict trading for accounts in Mainland China. As a reminder, SCMP reported that mainland branches of Hong Kong banks are tightening rules on offshore account access for mainland China residents amid Beijing's increased scrutiny of capital outflows.
• Amazon (AMZN) to invest over €10bln on European fulfilment centres.
• PVH (PVH): Updated guidance disappointed amid pressure on EMEA consumers from Middle East conflict.
• Costco (COST) May net sales jumped.
• Manchester United (MANU): Reports of Glazer Family possible sale of ownership stake.
• Blackstone (BX) private credit fund caps investor redemptions at 5%, Bloomberg reports.