A Broadcom earnings miss and Iran strikes on a U.S. ally ended the market's record run

Among index futures, the Nasdaq $NDAQ 100 was the biggest laggard, down 1.31%, with S&P 500 contracts off 0.47%. Dow Jones Industrial Average futures moved in the opposite direction, adding 309 points, or 0.61%.

Broadcom stock dropped 13% before the opening bell after the chipmaker's fiscal second-quarter results and forward guidance fell short of investor expectations. Broader chip stocks absorbed the hit as well, with the VanEck Semiconductor ETF sliding more than 3% ahead of the open. Arm Holdings, Marvell Technology, and Micron $MU Technology were each off roughly 6%. Cybersecurity firm CrowdStrike $CRWD stock fell 10% after issuing weak second-quarter revenue guidance.

Broadcom posted second-quarter revenue of $22.19 billion, up 48% year over year, with AI chip sales reaching $10.8 billion — a 143% increase from the same period a year earlier. But the company's forecast for AI semiconductor revenue of $16 billion in the current quarter came in below analyst expectations of $17.2 billion. On the earnings call, Broadcom President and CEO Hock Tan also acknowledged that Google $GOOGL would likely draw on multiple chip suppliers and warned that rapidly growing AI semiconductor sales were weighing on the company's overall gross margins — disclosures that deepened the stock's decline.

Thursday's moves follow a losing session Wednesday, when escalating conflict between the U.S. and Iran pressured markets. Among the flashpoints cited, Kuwait International Airport was struck by Iran on Wednesday morning. A day earlier, U.S. Central Command reported intercepting Iranian ballistic missiles and drones before launching retaliatory strikes on Qeshm Island in the Persian Gulf, which it said were prompted by Tehran's attempted attacks on American forces.

Brent crude slipped 2.23%, snapping a three-session run of gains. The trigger, according to The Wall Street Journal, was a renewed ceasefire agreement between Israel and Lebanon — a development that could ease one of the central obstacles in diplomatic efforts to resolve the U.S.-Iran conflict.

The back-to-back down days put the S&P 500 on pace to snap a nine-week winning streak. Speaking on CNBC's "Closing Bell," Keith Lerner — chief investment officer and chief market strategist at Truist Wealth — said the pullback was unsurprising given the market's extended run. "We've come a long way," he told CNBC. "Fundamentals are solid. Bull market still deserves a benefit of the doubt, but often markets are two steps forward, one step back."