OPENING CALL
Stock futures were mixed after a disappointing Broadcom revenue forecast helped stall the rally in artificial intelligence-related stocks.
The technology sector is showing patches of weakness following a couple of poorly received earnings reports. Broadcom shares were selling off in premarket trading after its guidance appeared to fall short of lofty expectations, with other chip stocks also retreating.
"This was a classic case of very high expectations meeting a market that wanted perfection... Investors are punishing anything that falls short of exactly what they wanted to hear," Hargreaves Lansdown said.
Meanwhile, oil prices eased after Israel and Lebanon reached a ceasefire agreement on Wednesday, raising prospects of a Middle East peace deal and calming investor concerns about prolonged energy supply disruptions and inflation.
President Trump has told aides privately that he would consider ending the ceasefire with Iran if Tehran kills American troops, U.S. officials said, insisting that the weekslong pause in airstrikes remains intact despite a steady stream of violent skirmishes.
On the economic front, investors will get another read on the labor market with the release of jobless claims data this morning ahead of tomorrow's all-important May jobs report.
Markets might overestimate the scope of a potential interest-rate increase by the Federal Reserve this year, SEB said.
"We have an obvious headwind for our forecast of a December cut, but still believe that the market is overstating the scope for a hike," it said. Markets currently price in about 20 basis points of Fed rate hikes by the end of the year, according to LSEG data.
Stocks to watch
Broadcom logged higher revenue in its latest quarter as demand for its AI chips accelerates. Still, shares slid more than 12% premarket after it issued guidance that failed to live up to investor expectations.
Coinbase Global, Robinhood Markets, Strategy: Shares of companies tied to cryptocurrency retreated premarket as bitcoin extended its slide, slumping to its lowest intraday level since early February.
Lululemon Athletica will report earnings today.
Meta Platforms has delayed plans to release its newest AI model to developers multiple times and as of Tuesday didn't have a planned date to release it, the Journal reported. Shares ticked down premarket.
Quantinuum is slated to begin publicly trading today after it raised $1.68 billion in an upsized IPO.
Super Micro Computer, Marvell Technology, Advanced Micro Devices, Intel: Shares of companies tied to AI slid premarket after Broadcom's results prompted investors to take a breather on the high-flying trade.
Watch For:
U.S. Weekly Jobless Claims; U.S. Revised Productivity and Costs for 1Q
Today's Top Headlines/Must Reads:
- Russia's Elite Is Souring on the War. Putin Doesn't Seem to Care.
- Meta Keeps Delaying the Release of Its New AI Model to Developers
- Self-Driving Car Company Waymo is Repurposing its Old EV Batteries
MARKET WRAPS
Forex:
The dollar eased after reaching a near two-month high against a basket of currencies on Wednesday. The greenback's recent positive momentum could continue if expectations for U.S. interest-rate rises build further, MUFG said.
The euro rose. The currency could come under renewed pressure against the dollar ahead of the ECB's June 11 decision, ING said.
Bonds:
Treasury yields were little changed in early trading, with investors continuing to expect a U.S.-Iran deal. "The war in the Middle East continues to dominate the global bond markets," with little room for a relief in the short term, Danske Bank said.
Energy:
Oil prices slipped. In early European trading, Brent crude was down 0.8%, while WTI futures fell 1%.
"Without a normalisation of regional oil flows, the market is increasingly exposed to sharp upward swings as inventories continue to thin," ING said.
Metals:
Gold prices ticked higher as traders reassess expectations for a U.S.-Iran peace deal after Israel and Lebanon agreed to a conditional ceasefire.
"Overall, gold remains rangebound, with steady central bank demand being offset by ETF outflows and short-term momentum traders positioning for a deeper correction," Saxo Bank said.
Copper
Copper edged lower in early trade. Recent copper-price strength appears to be U.S. "tariff-driven more than positioning-driven," said Sucden Financial.
Iron
Iron ore prices were lower in early trading. Prices were under pressure due to a sudden surge in exports from Guinea's Simandou iron ore project, according to ANZ research.
TODAY'S TOP HEADLINES
Meta Keeps Delaying the Release of Its New AI Model to Developers
Meta Platforms has delayed plans to release its newest artificial intelligence model to developers multiple times and as of Tuesday didn't have a planned date to release it, according to people familiar with the matter.
The delay, stretching nearly two months after the company's AI chief told developers to expect a release "soon," raises questions about how quickly Meta can monetize its massive investments in building its own frontier AI models.
Universal Music Shares Fall After Ackman Fund Offloads $1.5 Billion Stake
Universal Music Group shares fell after Bill Ackman's Pershing Square sold its stake valued at more than $1.5 billion, exiting the world's biggest music company five years after its initial investment.
Shares in Universal Music were down as much as 7.6% at 17.74 euros in European early morning trading Thursday, deepening their year-to-date loss to nearly 20%.
Foxconn, Intel Team Up to Develop AI Infrastructure
Foxconn Technology Group and Intel are partnering to develop artificial-intelligence infrastructure, aiming to address critical bottlenecks in modern data centers.
As massive AI models scale, especially with the rapid growth of inference and agentic workloads, the need for innovation is accelerating across the full stack of modern computing.
TSMC Not at Risk of Losing Competitive Edge, CEO Says
Taiwan Semiconductor Manufacturing isn't falling behind in next-generation chip making, its CEO said, dismissing concerns that it's at a disadvantage to rivals already adopting ultraexpensive equipment to make cutting-edge chips.
Speaking at an annual shareholders' meeting, TSMC Chief Executive C.C. Wei clarified the chip giant's position on the machines made exclusively by Dutch company ASML, and seen as critical for pushing the limits of microchip manufacturing.
Oil Prices Fall as Trump Sets Red Lines for Cease-Fire
Oil prices were slipping early on Thursday following a report that the White House intends to maintain a cease-fire with Iran unless American troops are killed.
Brent crude futures, the international standard, were down 1.1% at $96.71 a barrel. West Texas Intermediate futures were down 0.9% to $95.07 a barrel.
Another redemption wave is spooking the $2 trillion private-credit market
A fresh wave of investor redemptions has hit the roughly $2 trillion private-credit market, sending shares of the sector's industry giants sharply lower on Wednesday.
This time, the selloff can be pegged to news reports of redemptions that were capped at 5% at the $31 billion Cliffwater Corporate Lending Fund in the second quarter, as well as limits on fund withdrawals at Partners Group CH:PGHN, a Swiss and U.S. private-equity firm with $185 billion in assets under management.
The Hormuz Squeeze Is Redrawing the Oil Map for Good
For decades, the Persian Gulf's energy map converged on a single chokepoint: the Strait of Hormuz. Now, spurred by the Iran war, the region's petrostates are rushing to draw new lines to circumvent it.
Across the Gulf, governments are pouring billions into new oil pipelines, rail corridors and energy storage hubs to bypass the waterway in what is set to become one of the most durable outcomes of the conflict. The new energy links are part of a broader redrawing of the region's logistics map, shifting trade toward trucking, rail and new ports.
Trump Tells Aides He Won't Resume All-Out War With Iran Unless U.S. Troops Are Killed
President Trump has told aides privately that he would consider ending the ceasefire with Iran if Tehran kills American troops, U.S. officials said, insisting that the weekslong pause in airstrikes remains intact despite a steady stream of violent skirmishes.
The president's reluctance to reignite the war suggests he might be willing to withstand smaller flare-ups for weeks-or even months-to avoid a broader conflict in the Middle East.
China Uses LinkedIn to Lure Spy Recruits in West, U.S. and Allies Warn
BEIJING-Chinese spies are increasingly posing as job recruiters on LinkedIn and other professional networking sites to recruit Western military and government personnel, the U.S. and its intelligence allies warned this week, reinforcing calls for vigilance.
The Five Eyes intelligence-sharing network, which also includes Canada, the U.K., Australia and New Zealand, alleged that Chinese military intelligence operatives were posing as employees of private consultancies, think tanks and human-resources firms looking to hire foreign-policy or defense analysts.
Flesh-Eating Screwworm Found in Texas Calf, USDA Says
A calf in southern Texas tested positive for the New World screwworm, the first instance of the deadly fly-borne parasite detected in U.S. livestock since 1966.
The Agriculture Department confirmed late Wednesday that New World screwworm fly larvae were found in a 3-week-old calf in Zavala County, Texas. The flesh-eating parasite can be deadly to animals but isn't common among humans and isn't a food safety risk, the USDA said.
GOP-Led House Votes to Limit Trump's Iran War Powers
WASHINGTON-The GOP-led House voted to restrict President Trump's ability to continue the war against Iran without congressional approval, a rebuke to the White House and the latest sign that Republican lawmakers' support for the war is eroding on Capitol Hill.
The measure passed 215-208, with four Republicans joining Democrats in support. The resolution, which is unlikely to become law, directs the president to remove U.S. armed forces from hostilities against Iran unless explicitly authorized by Congress, other than to defend America, an ally or partner from "imminent attack."
Write to priscila.barrera@wsj.com
TODAY IN CANADA
Earnings:
Enghouse Systems
Economic Indicators $(ET)$:
Nothing major scheduled
Stocks to Watch:
CES Energy Solutions: Announces Refinancing of 6.875% Senior Unsecured Notes With 5.625% Senior Unsecured Notes; Offering Is Expected to Close on or About June 15
Fairfax Financial Holdings: Announces Pricing of Senior Notes Offering; S&PGR Rates Fairfax Financial Holdings' $750M Senior Nts 'A-'
PHX Energy Announces Increase to Its 2026 Cap Expenditure Program; Board Approved Increase to 2026 Cap Expenditure Program to C$80 M; Increased Investment Expected to Be Primarily Directed Towards Expanding Fleet of Rotary Steerable Systems
Sherritt International Names Richardson as Interim CFO
Transcontinental 2Q Revenue Misses Estimates
Other News:
Canada Orders Broadcast Regulator to Revise Streaming Decision Amid U.S. Trade Talks
Expected Major Events for Thursday
02:00/JPN: May Imported Vehicle Sales
08:00/UK: May UK monthly car registrations figures
08:30/UK: May S&P Global UK Construction PMI
09:30/US: May Challenger Job-Cut Report
10:00/FRA: Apr OECD CPI
12:30/US: 1Q Revised Productivity and Costs
12:30/US: 05/30 Unemployment Insurance Weekly Claims Report - Initial Claims
12:30/US: U.S. Weekly Export Sales
13:00/RUS: Weekly International Reserves
14:30/US: 05/29 EIA Weekly Natural Gas Storage Report
16:00/US: May Monthly U.S. Retail Chain Store Sales Index
20:30/US: Foreign Central Bank Holdings
20:30/US: Federal Discount Window Borrowings
23:01/UK: May BRC-Sensormatic IQ Footfall Monitor
23:30/JPN: Apr Provisional Labour Survey - Earnings, Employment & Hours Worked
23:30/JPN: Apr Household Spending
23:50/JPN: May Provisional Trade Statistics for 1st 20 days of Month
23:50/JPN: May International Reserves / Foreign Currency
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Expected Earnings for Thursday
Argan Inc $(AGX)$ is expected to report $2.33 for 1Q.
Atlantic International Corp $(ATLN)$ is expected to report for 1Q.
Brown-Forman Corp - Class B (BFA,BFB) is expected to report $0.33 for 4Q.
Caleres Inc $(CAL)$ is expected to report for 1Q.
Ciena Corp $(CIEN)$ is expected to report $1.11 for 2Q.
Columbus McKinnon Corp $(CMCO)$ is expected to report $0.02 for 4Q.
Concrete Pumping Holdings Inc (BBCP) is expected to report $0.01 for 2Q.
Cooper Cos $(COO)$ is expected to report for 2Q.
Docusign Inc (DOCU) is expected to report $0.36 for 1Q.
Fastenal Co $(FAST)$ is expected to report.
Guidewire Software Inc (GWRE) is expected to report $0.21 for 3Q.
North European Oil Royalty Trust $(NRT)$ is expected to report for 2Q.
Optical Cable Corp $(OCC)$ is expected to report for 2Q.
Orion Energy Systems Inc (OESX) is expected to report for 4Q.
Planet Labs PBC $(PL)$ is expected to report $-0.11 for 1Q.
Quanex Building Products Corp (NX) is expected to report $0.05 for 2Q.
Replimune Group Inc $(REPL)$ is expected to report $-0.60 for 4Q.
Rubrik Inc $(RBRK)$ is expected to report for 1Q.
Samsara Inc $(IOT)$ is expected to report $-0.03 for 1Q.
Saputo Inc (SAP.T,SAPIF) is expected to report $0.40 for 4Q.
ServiceTitan Inc (TTAN) is expected to report for 1Q.
Toro Co $(TTC)$ is expected to report $1.48 for 2Q.
Torrid Holdings Inc (CURV) is expected to report $-0.01 for 1Q.
Wealthfront Corp $(WLTH)$ is expected to report for 1Q.
Zumiez Inc (ZUMZ) is expected to report $-0.87 for 1Q.
lululemon athletica inc (LULU) is expected to report $1.68 for 1Q.
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ANALYST RATINGS ACTIONS
Acadia Healthcare Raised to Buy From Hold by Jefferies
AT&T Cut to Perform From Outperform by Oppenheimer
Aveanna Healthcare Raised to Outperform From Sector Perform by RBC Capital
Campbell's Cut to Underperform From Market Perform by Bernstein
Cardiff Oncology Cut to Hold From Buy by Craig-Hallum
Carter Bankshares Cut to Market Perform From Outperform by Hovde Group
Chipotle Mexican Cut to Equal-Weight From Overweight by Morgan Stanley
Conagra Brands Cut to Underperform From Market Perform by Bernstein
Dollar General Cut to Hold From Buy by Freedom Broker
Fulcrum Therapeutics Cut to Underweight From Overweight by JP Morgan
Heron Therapeutics Cut to Hold From Buy by Needham
Innovative Eyewear Cut to Hold From Buy by Maxim Group
Kraft Heinz Cut to Underperform From Market Perform by Bernstein
Leidos Holdings Cut to Hold From Buy by Jefferies
MGM Resorts Cut to Hold From Buy by CBRE
Omnicom Started at Buy by Goldman Sachs
Rezolute Raised to Market Outperform From Market Perform by Citizens
Shake Shack Cut to Equal-Weight From Overweight by Morgan Stanley
Shake Shack Cut to Outperform From Strong Buy by Raymond James
Simply Good Foods Cut to Market Perform From Outperform by Bernstein
Thermo Fisher Cut to Hold From Buy by HSBC
Victorias Secret & Co. Common Stock Cut to Hold From Buy by Jefferies
Victorias Secret & Co. Common Stock Cut to Neutral From Buy by UBS
Yext Cut to Neutral From Buy by B. Riley Securities
Yum Brands Raised to Overweight From Equal-Weight by Morgan Stanley
This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
June 04, 2026 05:59 ET (09:59 GMT)
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