Nasdaq futures lag at +0.09% as Broadcom guides under consensus and Snowflake jumps 24%

Sentiment: mixed S&P 500 futures: +0.22%

S&P 500 futures trade at 7,693.50, up 0.22% at 8:44am ET, with two after-the-bell earnings reactions pulling the index futures in opposite directions. AVGO.US is 3.07% lower at $355.97 after guiding fourth-quarter revenue to $34.8 billion against a $35.03 billion LSEG consensus, while SNOW.US is 24.11% higher at $380.00 on raised full-year guidance. Initial jobless claims printed 206,000 for the week ending 29 August against a 205,000 forecast, leaving Friday's employment report as the week's decisive labor reading.

Overnight drivers

• AVGO.US -3.07% pre-market to $355.97. Third-quarter revenue reached $29.6 billion, up 86% year on year, and AI semiconductor revenue reached $16.7 billion, up 221%. The fourth-quarter revenue guide of $34.8 billion landed about $230 million below consensus. Broadcom is the sixth-largest S&P 500 constituent and carries a larger weight again in the Nasdaq 100, which is why Nasdaq futures sit 36 basis points behind Dow futures this morning.
• SNOW.US $380.00, up 24.11% pre-market. Product revenue of $1.49 billion grew 37% year on year for a third consecutive quarter of acceleration, and full-year product revenue guidance rose to $6.07 billion from $5.84 billion. The reaction breaks the pattern of the past two sessions, when PANW.US fell 9.28%, MDB.US 13.54% and CRDO.US 20.04% after all three beat consensus. DDOG.US +6.15%, NOW.US +3.72% and CRWD.US +2.49% are following SNOW.US higher.
• IGV.US +1.68% against SMH.US -0.68% in the pre-market. Wednesday's split ran the other way, IGV.US -2.60% against SMH.US +0.96%.
• USD/JPY -1.94% to 155.58. Japan's 10-year government bond yield touched 3% on Tuesday for the first time since September 1996, the 20-year reached 3.885% and the 30-year headed for a record close near 4.18%. Swaps now price a 25 basis point Bank of Japan increase at the 18 September meeting and roughly 44 basis points by year-end. Board member Hajime Takata said a standard 25 basis point move was "not necessarily set in stone" and that consecutive increases could be considered.
• Gold $4,515.70 an ounce, up 2.29%, with Brent at $96.53 (+0.94%) and WTI at $92.33 (+1.45%). Crude has added roughly 9% across three sessions on hostilities between the United States and Iran, with President Trump saying renewed strikes would be "short-lived". The dollar index eased 0.56% to 99.04.

Wednesday's close

• S&P 500: 7,666.60 (+0.46%)
• Nasdaq Composite: 26,217.83 (+0.45%)
• Dow: 53,061.95 (+0.56%, +295.07 points)
• Russell 2000: 2,953.17 (+1.13%)
• VIX: 15.20 close, 15.30 at the pre-open

All three headline indices snapped a three-day losing streak as Treasury yields paused a run that carried the 10-year to 4.818%, its highest since November 2023. Nine of the 11 S&P 500 sectors finished higher and about 60% of index members advanced. The 10-year trades at 4.77% after the claims print.

DELL.US closed 15.81% higher after booking $60.9 billion of AI server orders, a record $95 billion backlog, and a $25 billion increase to full-year revenue guidance that takes it to $192 billion. NVDA.US added 3.21%, ORCL.US 3.13% and MU.US 2.43%. Software fell in the same session: MDB.US 13.54%, DDOG.US 6.53%, PLTR.US 5.81%, CRWD.US 5.42% and SNOW.US 4.37% ahead of its own result.

Overnight Asia and Europe

• Nikkei 225: 64,214.48 (-0.17%)
• Hang Seng: 25,213.31 (-0.39%)
• Shanghai Composite: 3,942.09 (+0.02%)
• KOSPI: 6,579.48 (+0.26%)
• STOXX 600: 647.16 (+0.19%)
• FTSE 100: 10,810.25 (+0.50%)
• DAX: 25,842.14 (+0.01%)
• CAC 40: 8,247.33 (-0.40%)

A 1.94% yen appreciation left the Nikkei 225 the weakest of the four Asian boards. The FTSE 100 leads Europe at +0.50% into the US open and the CAC 40 lags at -0.40%.

Pre-market movers

RARE.US at $14.07 is the largest single-name decline in the pre-market. The Angelman syndrome study failed on change from baseline in the Bayley-4 cognitive raw score and on the multidomain responder index, and the company said it will define expense reductions while it decides the program's future.

US economic calendar today (ET)

• 08:30 Initial jobless claims, week ending 29 August: 206,000 actual against 205,000 forecast, prior 204,000. Four-week average 207,250 and continuing claims 1,779,000.
• 08:30 Trade balance for July: -$71.2 billion forecast, prior -$73.26 billion.
• 08:30 Unit labor costs and productivity, second quarter final: 1.8% and 0.3% forecast.
• 10:00 ISM services for August: 54.5 forecast, prior 54.1.
• Friday August employment report.

What to watch

• 36 basis points separate Dow futures at +0.45% from Nasdaq 100 futures at +0.09%, and AVGO.US accounts for most of that gap.
• Japanese 10-year yields at 3% narrow the gap that has drawn Japanese capital into US Treasuries, and the US 30-year yield is near its 2007 range.
• ISM services at 10:00am ET is the last activity reading before Friday's payrolls, with the August print forecast at 54.5 against 54.1 in July.

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