US Stock Market Outlook: Middle East Uncertainty, Broadcom and TTD Surge

Written by Michael A. Johnson, Lead Editor & Market Strategist

AVGO+4.8%

TTD+18.36%

JD+0.28%

US Stock Market Update

Pre-Market Movements

On Thursday morning, US stock index futures initially rose after Iran stated it had not blocked the Strait of Hormuz. However, the market sentiment remains volatile. As of the latest update, Dow and S&P futures showed slight declines.

Notable Stock Performances

Star Tech Stocks: Mixed performance with Broadcom (AVGO) rising over 6% post-earnings, while Micron Technology (MU) and Google (GOOG) saw slight increases.
Chinese Stocks: Most declined, with Alibaba (BABA) down over 2% and Trip.com (TCOM) down over 1%. Bilibili (BILI) rose over 2% after earnings.
Storage Sector: Slight gains with Silicon Motion (SIMO) up over 3%, Western Digital (WDC) nearly 1%, and Micron (MU) and Seagate (STX) up 0.5%.

Broadcom's Earnings Report

Broadcom reported Q1 FY2026 earnings of $19.31 billion, a 30% year-over-year increase, slightly above market expectations. The company anticipates AI chip revenue to exceed $100 billion by 2027.

JD.com's Financial Update

JD.com reported a net loss of 2.7 billion yuan for Q4 due to new business investments, despite annual revenue surpassing 1.3 trillion yuan, a 13% increase.

Bilibili's Milestone

Bilibili achieved its first annual profit with revenues of 30.35 billion yuan, a 13% increase, and a net profit of 1.19 billion yuan.

Market Sentiment and Geopolitical Concerns

The market remains sensitive to geopolitical tensions, particularly in the Middle East. Goldman Sachs CEO David Solomon noted that market participants are trying to gauge the conflict's resolution, which could impact risk premiums.

Retail Investor Activity

Despite market volatility, retail investors continue to buy stocks aggressively, with a report indicating February was one of the strongest months for retail buying since the meme stock craze.

Conclusion

The US stock market is navigating through a complex landscape of earnings reports, geopolitical tensions, and retail investor behavior, leading to fluctuating sentiments and stock performances.

About the author

Michael A. Johnson

Michael A. Johnson, Ph.D. in Economics from Harvard University, brings 20 years of expertise in market forecasting and trading strategies. As a former chief economist at Morgan Stanley, he oversees Intellectia’s Top News section, delivering data-driven perspectives on global economic shifts.