Broadcom Earnings, US-Iran Hostilities, Yen Hike

Global markets are experiencing a mixed reaction to several key events. Broadcom's disappointing second-quarter revenue and unchanged sales forecast led to a significant plunge in its stock, dragging down other semiconductor companies like Micron Technology, AMD, Marvell Technology, and Qualcomm, and dampening the broader AI rally. This is expected to end the S&P 500's nine-week winning streak, though the Dow Jones Industrial Average hit a record high. Geopolitical tensions remain high with renewed fighting between the United States and Iran, despite hopes for progress towards a peace deal. Iran's foreign minister, Abbas Araghchi, stated no tangible progress in talks and threatened decisive responses to hostile acts. Meanwhile, an Israel-Lebanon ceasefire, contingent on Hezbollah's cessation of fire, has caused Brent Crude prices to ease from recent peaks. In currency markets, the Japan — Japanese yen strengthened slightly against the US dollar as the Japan — Bank of Japan hinted at a potential interest rate hike. The India — Indian rupee, however, plunged against the US dollar due to rising crude oil prices, continued US-Iran hostilities, and FII outflows, with the State Bank of India likely intervening to stabilize it.