Morning Bid: Small miss, big hit

A look at the ‌day ahead ​in European ​and global markets from Tom Westbrook

The drawdown in tech stocks that has followed a narrow earnings miss at ‌U.S. chipmaker Broadcom deepened in Asia on Friday, tipping ⁠South Korean stocks toward just their seventh weekly loss of 2026. [.KS]

Broadcom's second-quarter revenue ‌of $22.19 billion missed expectations for $22.27 ‌billion, but it also stuck with guidance for $100 billion in revenue next year, sending shares down 12.6%.

The result jarred with markets ​conditioned to expect relentless upgrades, and the fallout in Asia underscored the skittish mood around chips and the AI boom ⁠that fuelled them.

"The AI-led equity rally is showing signs of fatigue," said BNY's head of ​markets macro strategy, Bob Savage.

South Korea's KOSPI headed for a weekly drop of 3%, with heavy falls ​for Samsung and SK Hynix shares. The ‌won was also trading at its lowest since 2009 under pressure from a wave of foreign selling.

Oil ⁠prices held steady on Friday as traders waited for clarity on U.S.–Iran talks, but the week still points higher after earlier flare-ups stoked fears ⁠of a lasting supply shock.

Brent crude hovered around $95 a barrel, eyeing a weekly ​gain of more than 3%.

U.S. jobs data will headline the session on Friday. Expectations call for a modest 85,000 rise in May payrolls, but an ‌upside surprise could give a boost to the dollar.

The dollar index is set for a weekly gain, ‌and the currency briefly touched 160 yen in Asia trading, drawing ⁠some verbal pushback from Japanese ‌authorities who last ​month intervened around that level.

Key developments that could influence markets on Friday:

- U.S.-Iran developments

- U.S. employment data

(Editing by ‌Shri Navaratnam)

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