Market Update – September 6, 2024

US Stock Futures
US stock futures dipped on Friday following a mixed labor market report that left forecasters uncertain about the Federal Reserve’s upcoming monetary policy decisions. There is intense discussion around whether to implement a 50 basis points (bps) or a 25 bps reduction later this month, although many investors currently favor the smaller cut.

Broadcom’s Performance
Shares of Broadcom (NASDAQ:AVGO) fell over 9% in premarket trading after the company reported disappointing current-quarter sales guidance. It projected revenues of $14 billion for the fourth quarter, slightly below analysts’ expectations of $14.04 billion. This forecast raised concerns about potential sluggishness in its non-AI operations.

Impact on Chip Stocks
Other semiconductor stocks like Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD) also declined following Broadcom’s announcement. Stocks of Marvell Technology (MRVL) and Micron Technology (NASDAQ:MU) also experienced losses.

Mobileye’s Decline
Mobileye (MBLY) shares dropped over 7% after reports indicated Intel (NASDAQ:INTC) is considering options concerning its stake in the automated driving systems company.

UiPath’s Fluctuation
UiPath (NYSE:PATH) shares initially surged after the company raised its annual guidance and exceeded Wall Street’s second-quarter estimates, further increasing its share buyback program by $500 million. However, shares reversed midday due to broader market weakness.

Samsara’s Rise
Samsara (IOT) shares jumped 15% following better-than-expected second-quarter results, and the company also raised its annual outlook.

DocuSign’s Guidance
DocuSign (NASDAQ:DOCU) reported strong second-quarter earnings and revenue, but its guidance fell short of expectations, leading to a 2.75% increase in shares.

Super Micro Computer’s Decline
Super Micro Computer (NASDAQ:SMCI) stocks fell 7% after JPMorgan reduced its rating from ‘overweight’ to ‘neutral’, citing increased uncertainty.

Additional reporting by Louis Juricic