US Futures Hold Steady as Broadcom Slides on Weak Guidance, Iran Tensions and Fed Rate-Hike Bets Keep Markets on Edge

US Futures Hold Steady as Broadcom Slides on Weak Guidance, Iran Tensions and Fed Rate-Hike Bets Keep Markets on Edge

Published September 3, 2026 · Finance-Solutes.com Markets Desk

US stock index futures were little changed late Wednesday. Investors are weighing a fragile calm around the Iran conflict. They are also pricing in growing odds that the Federal Reserve could raise rates this month. Broadcom earnings added extra noise. The chipmaker’s shares whipsawed after its current-quarter revenue forecast fell short of estimates, even as the company posted another record quarter.

S&P 500, Nasdaq 100 and Dow futures all hovered close to flat after the close. That followed a session in which all three major benchmarks snapped a three-day losing streak. The S&P 500 rose 0.46% to 7,666.60. The Dow Jones Industrial Average added 295.07 points, or 0.56%, to 53,061.95. The Nasdaq Composite gained 0.45% to close at 26,217.83, according to CNBC.

Investor takeaway: Wall Street’s relief rally came with an asterisk. Traders are still bracing for two key catalysts this week: Friday’s August nonfarm payrolls report and a Federal Reserve that has turned noticeably more hawkish. A soft jobs number could cool rate-hike bets. A strong one could reinforce them ahead of the September 15–16 FOMC meeting.

Broadcom Slides, Then Pares Losses, on Mixed Fiscal Q4 Outlook

Broadcom was the standout mover in after-hours trading. The chipmaker beat estimates for its fiscal third quarter. Revenue came in at $29.6 billion, up 86% year-over-year. Adjusted earnings were $3.32 per share, ahead of the $3.24 analysts expected, according to CNBC. Shares initially fell as much as 5% after the report. They then pared most of that decline as investors digested the details.

The pressure point was guidance. Broadcom said it expects fiscal fourth-quarter revenue of approximately $34.8 billion. That is below the $35.03 billion consensus tracked by LSEG. The miss unsettled investors even though the AI business kept accelerating. Fourth-quarter AI semiconductor revenue is projected at $21.7 billion, up 236% year-over-year.

What helped the stock recover was Broadcom’s longer-term outlook. Management said it now expects AI-related revenue to roughly double to $115 billion in fiscal 2027. It expects AI revenue to double again to about $230 billion in fiscal 2028. That growth is underpinned by custom accelerator and networking deals with major AI developers. Broadcom shares were down just a fraction of a percent by evening, after initially tumbling on the guidance miss.

Hewlett Packard Enterprise Falls Despite Beating Estimates

Hewlett Packard Enterprise also reported after Wednesday’s close. Its stock fell roughly 5% in after-hours trading, even though the company beat on both revenue and earnings. HPE posted adjusted earnings of $1.11 per share on revenue of $12.21 billion, both ahead of consensus. Revenue was up about 34% year-over-year to a record level. The decline centered on management’s caution about margins. Operating margins could moderate next quarter as the product mix shifts toward lower-margin AI systems. Ongoing shortages of memory chips and wafer capacity are also limiting how fast HPE can convert its order backlog into revenue.

Iran Tensions Keep a Floor Under Oil Prices

Behind the equity moves sits a renewed conflict between the United States and Iran. Fresh US strikes hit Iranian targets near the Strait of Hormuz this week, following attacks on commercial shipping in the waterway. Crude touched a roughly six-week high before the rally eased. WTI crude settled near $91 a barrel. Brent crude closed around $95.63 on Wednesday. Both were little changed to modestly higher on the day, as traders weighed further supply-disruption risk against signs that oil is still reaching the market.

US Energy Secretary Chris Wright said more than 17 million barrels of oil transited the Strait on Monday. That was the highest daily volume since the conflict began. Still, tanker crossings tracked by Kpler remained well below pre-war norms. That gap between resilient flows and an unresolved military standoff is likely to keep energy markets reactive to headlines in the days ahead.

Fed Rate-Hike Odds Climb Ahead of Friday’s Jobs Report

The other major swing factor for markets is monetary policy. Fed Chair Kevin Warsh struck a hawkish tone at last month’s Jackson Hole symposium. He said the central bank may still have “work to do” on inflation. That pushed market-implied odds of a 25-basis-point hike at the September 16 meeting to roughly 60%, up sharply from around one-in-three before the speech, according to FXStreet and Morningstar. New York Fed President John Williams struck a more measured tone this week. He said elevated bond yields partly reflect economic strength, not a certainty of higher rates.

Friday’s nonfarm payrolls report for August is now the most closely watched data point before the Fed meeting. Consensus estimates point to a modest rebound in job creation. Unemployment is expected to hold around 4.1%. A private ADP report already showed hiring slowing to its weakest pace since January.

• AI infrastructure names remain a two-way trade. Broadcom’s raised multi-year AI revenue outlook shows hyperscaler demand is still strong. But near-term guidance misses show the market is now pricing in near-perfection.
• Margin commentary is moving stocks as much as headline beats. Both Broadcom and HPE topped estimates yet sold off on forward-looking margin and supply-chain concerns. That pattern is worth watching through the rest of earnings season.
• Energy markets remain a key inflation input for the Fed. Sustained oil-price gains tied to the Iran conflict add to the case for a September hike. Strait of Hormuz headlines matter well beyond energy portfolios.
• Friday’s jobs report feels like a binary event for rate expectations. A weak print could quickly unwind hike bets. A firm one could cement them heading into the FOMC meeting.

Disclaimer: This article is for informational and educational purposes only. It does not constitute financial or investment advice. Stock prices, futures levels, and commodity prices change continuously. Always check real-time data before making any investment decision. For personalized guidance, Finance-Solutes.com’s free courses and expert advisors can help translate market news like this into a strategy that fits your own portfolio.

Source: Adapted and fact-checked from Investing.com Vietnam, with figures cross-verified against CNBC, Reuters, Benzinga, FXStreet, and company filings.

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