Stock futures indicated a predominantly downward trend on Thursday, following a previous day when major indexes concluded their five-session run of closing at record highs, as shares of Broadcom and other AI chip manufacturers experienced declines. Futures for the Nasdaq 100 and S&P 500 experienced declines of 1.3% and 0.5%, respectively, whereas futures for the Dow Jones Industrial Average saw an increase of 0.5%. Yesterday, the blue-chip index, the tech-heavy index, and the benchmark index concluded the trading session down by 1.2%, 0.9%, and 0.7%, respectively, with the blue-chip index declining by over 600 points and the benchmark index ending a nine-session winning streak. Shares of AI chipmaker Broadcom and cybersecurity firm CrowdStrike, which reported quarterly results after the bell yesterday, dropped a respective 14% and 10% in premarket trading.
Other AI-tied stocks experienced a downturn, with Marvell Technology sinking 6.5% and Super Micro Computer declining 7%.“As markets simultaneously navigate geopolitical tensions, tariff restructuring, energy supply-chain realignment, and an expanding AI investment cycle, the risks associated with excessive concentration in any single sector or asset class are increasing,” analyst Dean Chen said in written commentary. Ultimately, the assets most likely to outperform across market cycles will be those supported by sustainable cash flows, strong pricing power, and ample liquidity—not narrative-driven investments whose valuations rely primarily on investor enthusiasm. Investors have been keenly awaiting the initial public offering of SpaceX, led by Elon Musk, and received additional information late Wednesday.
In a regulatory filing, the company indicated its expectation to sell 555,555,555 shares at a price of $135 each, which would result in approximately $75 billion in raised capital. That would represent the largest increase in history, indicating a valuation of approximately $1.75 trillion. Oil prices, which had experienced an increase during the initial three days of this week, declined following the announcement from Israel and Lebanon regarding the renewal of their ceasefire agreement. West Texas Intermediate futures, the U.S. crude oil benchmark, experienced a decline of 1.4%, approaching $94.65 a barrel in recent trading. Meanwhile, front-month contracts of Brent crude, the global benchmark, fell by 1.6% to $96.25. Bitcoin was trading at approximately $62,200, a decline from overnight peaks of about $67,800, marking its lowest point since February.
The U.S. dollar index, which monitors the value of the greenback relative to a selection of foreign currencies, experienced a decline of 0.3%, settling at 99.26. The 10-year Treasury yield, a critical determinant of interest rates on mortgages and various consumer loans, stood at 4.47%, a decrease from Wednesday’s closing figure of 4.50%. Gold futures increased by 0.8%, reaching approximately $4,500 per ounce. Tomorrow, the focus of investors will shift to the May jobs report. U.S. employers added 115,000 jobs in April, significantly exceeding economists’ estimates, and projections indicate that employers are expected to add 80,000 positions in May.