(Updated – September 6, 2024 12:06 PM EDT)
Investing.com — U.S. stock futures fell on Friday as mixed reports on the labor market muddied expectations for the size of the Federal Reserve's next monetary policy decision and sparked sharp disagreement over whether to cut interest rates by 50 basis points or 25 basis points later this month. Many investors now believe a smaller cut is most likely, but the debate isn't over yet.
stock Broadcom (Nasdaq: ) shares fell more than 9% in premarket trading after the company's current-quarter sales guidance fell slightly short of investor expectations. The company now expects fourth-quarter sales of $14 billion, slightly below expectations of $14.04 billion, according to LSEG data cited by Reuters. The outlook was seen as a sign of possible weakness in the company's non-AI-related businesses.
Other chip stocks, including artificial intelligence darlings NVIDIA (NASDAQ:) and peers Advanced Micro Devices (NASDAQ:) fell after Broadcom's report. Marvell (NASDAQ:) Technology (MRVL) and Micron Technology (NASDAQ:) also fell.
Mobileye (MBLY) shares fell more than 7%. Bloomberg News earlier reported that Intel (NASDAQ:) was considering options for its stake in its self-driving systems unit.
UI Pass (NYSE:) shares initially surged after the company raised its full-year guidance and reported second-quarter results that beat Wall Street expectations. The software maker also boosted its share-buyback program by $500 million. Shares reversed midday, dragged down by broader market weakness.
Reincarnation Shares of application software company IOT rose 15% after the company reported better-than-expected second-quarter profit and also raised its full-year outlook.
DocuSign (NASDAQ:) reported better-than-expected second-quarter profit and revenue, but the company's guidance failed to impress investors. Shares rose 2.75%.
Super Microcomputer (Nasdaq: Nasdaq shares fell 7% after JPMorgan analysts downgraded the company's stock to “neutral” from “overweight,” citing growing uncertainty.
Additional reporting by Louis Juricic
