US Opening Bell | Dow rallies while tech slides; Broadcom plunges 14%; Chip stocks sink

Market

June 4, U.S. stocks opened mixed as the Dow Jones Industrial Average gained 1.0%, while the S&P 500 slipped 0.3% and the Nasdaq Composite fell 1.0%. Rotation into industrials and financials offset weakness in high-growth technology issues after cautious chip guidance.

Broadcom plunges 14.1% after a downbeat revenue outlook, followed by Micron Technology down 6.8%, Marvell Technology off 6.4%, Advanced Micro Devices lower 5.6% and Intel retreating 3.5%. On the upside, ServiceNow jumps 3.5% on an analyst upgrade and Palantir Technologies Inc. advances 1.8% on a fresh defense contract.

Direxion Daily Semiconductors Bear 3x Shares surges 14.3% as traders hedge chip exposure, while Tesla Motors falls 0.8% amid an EU Autopilot probe. Alphabet adds 0.7% on new AI product launches, Apple inches up 0.5% ahead of WWDC, and Taiwan Semiconductor Manufacturing slips 1.8% after peer warnings from Asia foundries.

News

Broadcom issues cautious revenue outlook, shares dive 14.1%. Management pointed to delayed cloud spending and weak enterprise demand, prompting multiple price-target cuts and weighing on the semiconductor complex.

Micron Technology hit by new Chinese export restrictions, stock falls 6.8%. Beijing added certain memory products to a review list, rekindling supply-chain uncertainty and pressuring peer stocks.

ServiceNow lifts full-year guidance, shares rise 3.5%. Robust federal and Fortune 500 demand pushed subscription growth to the top of management’s range, reinforcing confidence in digital-workflow spending.

Palantir secures $463 million Pentagon AI contract, stock up 1.8%. The multi-year award expands Palantir’s battlefield analytics platform across additional combatant commands.

Intel delays Ohio fab ramp by six months, shares fall 3.5%. Construction challenges and a slower server recovery forced the company to push out volume production, raising concerns about its foundry roadmap.

Tesla faces EU Autopilot probe, shares slip 0.8%. Regulators will examine crash data and marketing claims, potentially leading to software changes or fines.

Alphabet unveils new Gemini AI model, shares add 0.7%. Early enterprise testers reported faster inference and lower costs, boosting sentiment for the Google Cloud unit.

U.S. initial jobless claims rise to 232,000, futures wobble. The uptick signals a moderating labor market and could influence Federal Reserve rate discussions later this month.

WTI crude drops 2%, energy majors retreat. Weak demand signals and an underwhelming OPEC+ output plan sent oil below $75, pushing Exxon Mobil and Chevron lower at the open.

FTC opens antitrust inquiry into Amazon Prime bundling, shares steady. Investigators will assess whether the subscription ties suppress competition, adding to the company’s regulatory overhang.