S&P 500 futures fall as Broadcom leads chip stocks lower: Live updates

S&P 500 futures fell Thursday as traders dumped chip stocks following an underwhelming report from Broadcom, while they also monitored the latest developments in the Middle East.

Futures tied to the broad market index fell by 0.4%, while Nasdaq 100 futures shed 1.1%. Dow Jones Industrial Average futures, on the other hand, traded 226 points higher, or 0.4%.

Shares of Broadcom traded 13% lower after the chipmaker reported a fiscal second-quarter revenue miss. Cybersecurity stock CrowdStrike also fell 10% after giving lackluster second-quarter revenue guidance.

Semiconductor names, which led the latest leg higher in the market’s rally to record levels, fell broadly. The VanEck Semiconductor ETF (SMH) lost more than 3% before the bell. Arm Holdings, Micron Technology and Marvell Technology were also down around 6% each.

Thursday’s moves follow a losing day on Wall Street, with stocks pressured by rising tensions in the Middle East. Attacks escalated between the U.S. and Iran. Iran struck Kuwait International Airport early Wednesday, while one day earlier U.S. Central Command said it had defeated multiple Iranian ballistic missiles and drones, and carried out “self-defense strikes” on Qeshm Island in the Persian Gulf. It said that this was in response to “attempted attacks” by Tehran.

Those declines put the S&P 500 — which is riding a nine-week winning streak — lower for the week. But Keith Lerner, CIO and chief market strategist at Truist Wealth, noted that a sell-off is normal following such strong runs.

“I just think we’re due for a rest,” he said on CNBC’s “Closing Bell.” “We’ve come a long way. Fundamentals are solid. Bull market still deserves a benefit of the doubt, but often markets are two steps forward, one step back. We’ve had three steps forward, so maybe at least a mini step back, or at least some sideways chop.”

— CNBC’s Kevin Brueninger contributed to this report.