U.S. stock futures flat amid Iran, rate caution; Broadcom dips after earnings

U.S. stock index futures moved little on Wednesday evening as caution over simmering tensions with Iran and potential increases in interest rates kept investors to the sidelines.

Broadcom Inc (NASDAQ:AVGO) was a notable aftermarket mover, falling slightly after a soft current-quarter forecast overshadowed better-than-expected fiscal third-quarter earnings.

S&P 500 Futures steadied at 7,677.25 points by 19:30 ET (23:30 GMT). Nasdaq 100 Futures were flat at 29,184.50 points, while Dow Jones Futures were flat at 53,144.0 points.

Futures steadied after a positive session on Wall Street, which recovered from a sluggish start to September. But overall gains were limited, with markets on edge before key labor market data due on Friday.

Broadcom falls on disappointing Q4 guidance, but pares losses

Broadcom fell as much as 3% in aftermarket trade after the chipmaker’s fiscal fourth-quarter revenue guidance– at $34.8 billion– missed market estimates.

Its fiscal third-quarter earnings were slightly higher than Wall Street estimates.

Still the stock pared a bulk of its aftermarket declines after Broadcom lifted its fiscal 2027 and 2028 artificial intelligence chip revenue forecasts. The company expects AI chip revenue to double to roughly $230 billion in fiscal 2028.

While the company has benefited from soaring demand for its custom AI chips, its shares are only up about 6% so far in 2026, vastly underperforming its peers and the SOX, which is up 54% this year.

Concerns over stretched AI spending and increasing competition from rivals such as Marvell Technology Inc (NASDAQ:MRVL) weighed heavily on Broadcom in recent months.

Among other major aftermarket movers, Hewlett Packard Enterprise Co (NYSE:HPE) slid over 5% after the company flagged some potential weakness in its margins, as well as supply chain bottlenecks.

Wall St rises but Iran, rate risks remain in play

Wall Street indexes rose on Wednesday, aided in part by Treasury yields retreating from recent highs, while a rally in oil prices also cooled.

The S&P 500 rose 0.46%, the Dow Jones Industrial Average added 0.56%, and the NASDAQ Composite rose 0.45%.

But Wall Street was nursing a rough start to September, especially after a recent resurgence in U.S.-Iran military tensions over the Strait of Hormuz.

The two traded strikes for the first time since late-July, sending oil prices soaring. This in turn added to concerns over sticky inflation and higher interest rates.

Hawkish comments from the Federal Reserve also weighed, amid growing conviction that the central bank will raise interest rates in September.

Focus this week is squarely on nonfarm payrolls data for August, due Friday, for more cues on the labor market and rates. Strength in employment gives the Fed more headroom to raise interest rates.