Broadcom forecast miss cools AI rally; Indonesia rout hits Asia

On June 5, Broadcom cut its semiconductor revenue outlook and its shares fell about 14%–15% in premarket trading. The guidance revision coincided with broad declines in semiconductor and cybersecurity stocks; CrowdStrike dropped roughly 10%. Nasdaq 100 futures fell after the index moved below a short-term ascending channel that began on May 19.

Oil prices eased from recent spikes, with WTI and Brent crude down about 2%–3% to the low-to-mid $90s per barrel. The Dow Jones Industrial Average rose 875 points, or about 1.7%, to a record high as industrial and financial stocks outperformed. Reports of talks related to a ceasefire in Lebanon and U.S.-Iran negotiations initially reduced energy risk, but ceasefire efforts faced setbacks after Hezbollah rejected a proposed truce and Israel said it would not withdraw troops.

Indonesia experienced a sharp capital flight after President Prabowo Subianto announced measures to take direct control of certain commodity exports. Foreign outflows hit both equities and bonds, leaving the benchmark stock index roughly 36% below its record high from five months earlier and the rupiah down more than 7% against the U.S. dollar. Authorities in Indonesia and the Philippines intervened to support their currencies.

South Korea recorded spillover effects: the won weakened to about 1,545 per USD, its weakest level since 2009, and the KOSPI fell as much as 5% intraday. Other Asia Pacific markets moved lower: Japan’s Nikkei 225 slipped around 1.6%, the Hang Seng fell about 0.8%, Australia’s ASX 200 retreated near 0.7%, and Singapore’s STI edged lower roughly 0.3%. Europe’s Stoxx 600 held modest gains amid a lower weighting to technology stocks.

U.S. Treasury yields shifted lower at the short end of the curve. The two-year yield eased about four basis points to near 4.05%, while the 10-year yield remained around 4.48%. The dollar index dipped slightly and spot gold rallied about 0.9%.

Markets are awaiting U.S. May nonfarm payrolls and the unemployment rate. Consensus forecasts call for payrolls of about +85,000 versus April’s +115,000, and an unchanged unemployment rate near 4.3%.

Technical indicators showed the Nasdaq 100 breaking below a minor uptrend from May 19, with 30,535 cited as a near-term pivot. A slide below the 30,000 level could expose support near 29,700 and 29,410, while an hourly close back above 30,535 would restore the short-term bullish bias.