Stocks Fall From Record on Broadcom Miss, Oil Dips: Markets Wrap
(Bloomberg) — Asian stocks fell alongside US equity-index futures as the AI-fueled rally that powered global equities to record highs lost momentum after a weak forecast from chipmaker Broadcom Inc.
The MSCI Asia Pacific Index dropped 1.5%, snapping a four-day rally that pushed the gauge to an all-time high. South Korea’s Kospi, a bellwether for artificial intelligence investments and the world’s best-performing gauge this year, fell 1.9%. Nasdaq 100 futures retreated 0.7% as Broadcom tumbled 14% in extended trading after its outlook failed to impress investors.
Asian losses followed a pullback on Wall Street, where the S&P 500 snapped a nine-day winning streak as renewed US-Iran clashes damped risk appetite. As sentiment weakened, Bitcoin traded around $63,000, the lowest level since February.
Some relief emerged after the US announced a ceasefire between Israel and Lebanon, helping Brent crude halt a three-day rally and fall over 1% to trade near $96.60 a barrel. The Bloomberg gauge of the dollar also edged lower, while gold rose 0.6% to about $4,460 an ounce on expectations the ceasefire would be a step toward resolving the wider Middle East conflict.
Broadcom’s disappointing outlook is testing the durability of the artificial-intelligence rally that has driven global equities, especially semiconductor stocks, to record highs. At the same time, renewed geopolitical tensions and persistent concerns about higher-for-longer interest rates are also weighing on sentiment.
“For Asia, this may serve as a reminder for investors to pocket in some of the lofty profits they have made this year as there are some uncertainties regarding the future demand for AI chips,” said Fabien Yip, market analyst at IG International.
The rally in artificial-intelligence stocks paused on Wednesday as the risk-on mood started to dissipate. UBS Group AG’s basket of AI winners fell 1.4%, snapping a four-session winning streak.
Some investors also warned that the booming artificial-intelligence market is showing signs of a bubble that will eventually burst.
“All great technology changes produce bubbles,” billionaire investor Ray Dalio, the founder of Bridgewater Associates, said in a Bloomberg Television interview Wednesday.
Elevated oil prices and signs of resilience in the US labor market sent Treasuries lower Wednesday, as traders increased bets that the Federal Reserve’s next move will be to raise interest rates. Bonds gave up some of those losses early Thursday with the Treasury 10-year yield falling two basis points to 4.48%.
In Asia, the yen hovered near the 160-per-dollar level after comments from Bank of Japan Governor Kazuo Ueda that make an interest rate hike this month sound likely but not certain. The Indonesian rupiah weakened to the psychological level of 18,000 per dollar, putting investors on watch for a stronger response from the central bank.
Meanwhile, data showed US companies added the most jobs since January 2025, suggesting hiring momentum remains intact despite higher energy costs. If confirmed by Friday’s payrolls report, the figures may reinforce expectations that the Fed is more likely to raise rates in the months ahead.
Investors will get another read on the labor market on Thursday with weekly jobless claims, ahead of the government’s monthly employment report on Friday.
Fed Bank of Dallas President Lorie Logan said policymakers may need to raise rates later this year to bring inflation back to target. Separately, New York Fed President John Williams told Yahoo Finance that the outlook for rates remains uncertain.
“If incoming US data continue to surprise positively, investors may increasingly express a more hawkish Fed view through renewed dollar strength, particularly against lower- and zero-yielding currencies and commodities like the Japanese yen and gold,” said Fawad Razaqzada at Forex.com.
Corporate Highlights:
Alphabet Inc. upsized its equity raise to $84.75 billion from the $80 billion it announced just two days earlier in a bid to help fund growing artificial intelligence spending plans. Meta Platforms Inc. is selling businesses access to an AI agent for the first time, its latest effort to generate revenue to offset the company’s hefty investments. JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon plans to discuss the upcoming SpaceX initial public offering with thousands of the bank’s high-net-worth clients this week. Some of the main moves in markets:
Stocks
S&P 500 futures fell 0.5% as of 11:44 a.m. Tokyo time Japan’s Topix fell 1.4% Australia’s S&P/ASX 200 fell 1.5% Hong Kong’s Hang Seng fell 1.3% The Shanghai Composite fell 0.4% Euro Stoxx 50 futures fell 0.4% Currencies
The Bloomberg Dollar Spot Index was little changed The euro rose 0.1% to $1.1609 The Japanese yen rose 0.1% to 159.90 per dollar The offshore yuan was little changed at 6.7755 per dollar The Australian dollar was little changed at $0.7125 Cryptocurrencies
Bitcoin fell 2.5% to $63,321.01 Ether fell 0.4% to $1,771.83 Bonds
The yield on 10-year Treasuries declined two basis points to 4.47% Japan’s 10-year yield was unchanged at 2.645% Australia’s 10-year yield declined one basis point to 4.90% Commodities
West Texas Intermediate crude fell 1.2% to $94.91 a barrel Spot gold rose 0.6% to $4,462.24 an ounce This story was produced with the assistance of Bloomberg Automation.
–With assistance from Toby Alder and Winnie Hsu.
©2026 Bloomberg L.P.
