{"id":62719,"date":"2026-06-04T14:07:43","date_gmt":"2026-06-04T18:07:43","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/dow-and-small-caps-surge-as-tech-stumbles-on-broadcom-outlook-lululemon-earnings-in-focus\/62719\/"},"modified":"2026-06-04T14:07:43","modified_gmt":"2026-06-04T18:07:43","slug":"dow-and-small-caps-surge-as-tech-stumbles-on-broadcom-outlook-lululemon-earnings-in-focus","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/dow-and-small-caps-surge-as-tech-stumbles-on-broadcom-outlook-lululemon-earnings-in-focus\/62719\/","title":{"rendered":"Dow and Small Caps Surge as Tech Stumbles on Broadcom Outlook; Lululemon Earnings in Focus"},"content":{"rendered":"

The U.S. stock market is witnessing a sharp divergence during afternoon trading this Thursday, June 4th, 2026. While blue-chip stocks and small-cap equities are enjoying a robust rally, the technology sector is under significant pressure following a disappointing outlook from a major semiconductor player. The Dow Jones<\/a> Industrial Average (DIA<\/a>) and the iShares Russell 2000 ETF (IWM<\/a>) are both leading the charge, each climbing 1.52%. In contrast, the tech-heavy Nasdaq Composite (QQQ<\/a>) has slipped into the red, down 0.13%, as investors rotate out of high-flying artificial intelligence names and into defensive and value-oriented sectors.<\/p>\n

Market Indexes and Sector Rotation<\/h2>\n

The broader market, represented by the State Street SPDR S&P 500<\/a> ETF Trust (SPY<\/a>), remains in positive territory with a gain of 0.48%. However, the internal dynamics of the market reveal a massive shift in sentiment. The "risk-off" move in technology is being offset by a surge in healthcare and financials. The State Street Health Care Select Sector SPDR ETF (XLV<\/a>) is up an impressive 2.54%, while the State Street Financial Select Sector SPDR ETF (XLF<\/a>) has gained 2.37%. Regional banks are also seeing a resurgence, with the State Street SPDR S&P Regional Banking ETF (KRE<\/a>) jumping 2.74%.<\/p>\n

Biotech is the standout performer of the day, with the State Street SPDR S&P Biotech ETF (XBI<\/a>) soaring 2.64%. On the flip side, the energy sector is reeling as the United States Oil Fund (USO<\/a>) plunged 3.65%. This decline in energy prices follows reports of a conditional ceasefire agreement between Israel and Lebanon, which has significantly eased geopolitical risk premiums in the crude market.<\/p>\n

Semiconductor Slump and Big Tech Performance<\/h2>\n

The primary drag on the Nasdaq today is the semiconductor industry. Broadcom (AVGO<\/a>) shares have plummeted 14.6% after the company provided fiscal third-quarter guidance that failed to meet the lofty expectations of AI investors. Despite beating earnings estimates, CEO Hock Tan\u2019s decision not to raise the full-year target for AI semiconductor revenue triggered a wave of profit-taking across the space. This sentiment spilled over into Micron Technology (MU<\/a>), which fell 4.8%, and Marvell Technology (MRVL<\/a>), which declined 6.5%.<\/p>\n

Despite the weakness in chips, some "Magnificent Seven" names are showing resilience. Google parent Alphabet (GOOGL<\/a>) is trading up 3.5% at $368.22, while Nvidia (NVDA<\/a>) has managed a 1.6% gain to reach $217.97. Amazon (AMZN<\/a>) and Meta Platforms (META<\/a>) are both up 1.5%. However, Tesla (TSLA<\/a>) is bucking the trend, falling 1.1% to $418.99, and Microsoft (MSFT<\/a>) is flat with a marginal 0.1% increase.<\/p>\n

In more speculative news, Solidion Technology (STI<\/a>) is the day's most dramatic mover, skyrocketing 390.7% on massive volume following a breakthrough corporate announcement.<\/p>\n

Upcoming Market Events and Earnings<\/h2>\n

Investors are bracing for a busy afternoon as several high-profile companies prepare to report earnings after the 4:00 PM ET bell. All eyes are on Lululemon Athletica (LULU<\/a>), which is currently trading near its 52-week low. Analysts are concerned about slowing growth in the U.S. market and will be looking for signs of a turnaround. Other notable companies reporting after the close include Samsara (IOT<\/a>), Rubrik (RBRK<\/a>), Planet Labs (PL<\/a>), Guidewire Software (GWRE<\/a>), and The Cooper Companies (COO<\/a>).<\/p>\n

Earlier today, Ciena Corporation (CIEN<\/a>) reported strong fiscal second-quarter results, with revenue jumping 40% year-over-year to $1.57 billion. Despite the beat and a raised full-year outlook, the stock faced volatility as the broader tech sell-off weighed on networking infrastructure names.<\/p>\n

Looking ahead, the market is awaiting the May nonfarm payrolls report due Friday morning. Analysts expect the economy to have added approximately 85,000 jobs, a figure that could influence the Federal Reserve's next policy decision. With the Cboe Volatility Index (VXX<\/a>) down 2.04% today, the market appears to be consolidating its gains outside of the tech sector as it prepares for tomorrow's critical economic data.<\/p>\n","protected":false},"excerpt":{"rendered":"

The U.S. stock market is witnessing a sharp divergence during afternoon trading this Thursday, June 4th, 2026. While blue-chip stocks […]<\/p>\n","protected":false},"author":2,"featured_media":50312,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"rank_math_schema_Article":[],"rank_math_focus_keyword":[],"rank_math_description":[],"financial_data_references":[],"stock_symbols_mentioned":[],"footnotes":""},"categories":[6824,94],"tags":[95,1487,2919,3710,4223,4350,5027,5197,5383],"class_list":["post-62719","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-market-update","tag-nasdaq","tag-lulu","tag-avgo","tag-federal-reserve","tag-inflation","tag-dow-jones","tag-semiconductors","tag-sti","tag-biotech"],"_links":{"self":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts\/62719","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/comments?post=62719"}],"version-history":[{"count":0,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts\/62719\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/media\/50312"}],"wp:attachment":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/media?parent=62719"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/categories?post=62719"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/tags?post=62719"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}