Broadcom Earnings Miss Triggers Global Tech Stock Selloff and Market Volatility
Market Reactions and Key Developments Following Broadcom's Earnings Report
A look at the day ahead in European and global markets from Tom Westbrook
Broadcom's Earnings Miss and Immediate Impact
The drawdown in tech stocks that has followed a narrow earnings miss at U.S. chipmaker Broadcom deepened in Asia on Friday, tipping South Korean stocks toward just their seventh weekly loss of 2026. [.KS]
Broadcom's second-quarter revenue of $22.19 billion missed expectations for $22.27 billion, but it also stuck with guidance for $100 billion in revenue next year, sending shares down 12.6%.
Market Sentiment and AI Boom Concerns
The result jarred with markets conditioned to expect relentless upgrades, and the fallout in Asia underscored the skittish mood around chips and the AI boom that fuelled them.
"The AI-led equity rally is showing signs of fatigue," said BNY's head of markets macro strategy, Bob Savage.
Regional Market Movements
South Korea's Market Performance
South Korea's KOSPI headed for a weekly drop of 3%, with heavy falls for Samsung and SK Hynix shares. The won was also trading at its lowest since 2009 under pressure from a wave of foreign selling.
Oil and Currency Markets
Oil prices held steady on Friday as traders waited for clarity on U.S.–Iran talks, but the week still points higher after earlier flare-ups stoked fears of a lasting supply shock.
Brent crude hovered around $95 a barrel, eyeing a weekly gain of more than 3%.
Dollar and Yen Movements
U.S. jobs data will headline the session on Friday. Expectations call for a modest 85,000 rise in May payrolls, but an upside surprise could give a boost to the dollar.
The dollar index is set for a weekly gain, and the currency briefly touched 160 yen in Asia trading, drawing some verbal pushback from Japanese authorities who last month intervened around that level.
Key Developments to Watch
Key developments that could influence markets on Friday:
- U.S.-Iran developments
- U.S. employment data
(Editing by Shri Navaratnam)
