S&P 500, Nasdaq Slide at Open as Broadcom Revenue Miss Dents Chip Stocks

💡 Broadcom's revenue miss weighed on chip stocks, sending the S&P 500 and Nasdaq lower at the open.

The S&P 500 and Nasdaq composite fell at the open on Monday, led lower by the technology sector, as Broadcom Inc.'s disappointing revenue miss dented chip stocks.

Broadcom's fiscal first-quarter revenue missed expectations, and the company's guidance was also weaker than anticipated. The news weighed on the semiconductor sector, with $NVDA down 5.4% in early trading.

Chip Stocks Take a Hit

The semiconductor sector has been a bright spot for the S&P 500 in recent months, but Broadcom's revenue miss has raised concerns about the sector's health. $TXN, a leading chipmaker, was down 3.2% in early trading, while $ADI, a supplier of analog and mixed-signal semiconductors, fell 4.1%.

Technology Sector Leads the Decline

The technology sector was the biggest loser in the S&P 500, with $QQQ down 2.1% in early trading. The Nasdaq composite was also lower, falling 1.8% in the first hour of trading.

What It Means for Investors