U.S. Futures Ease as Oil Tops $110 Ahead of Iran Deadline; Broadcom and Samsung in Focus

U.S. Futures Dip, Services Data Softens

By 03:15 ET (07:15 GMT) on Tuesday, Dow futures were down 104 points, or 0.2%, S&P 500 futures declined 25 points, or 0.4%, and Nasdaq 100 futures slipped 118 points, or 0.5%. This followed gains in all three major Wall Street indices in the prior session as markets watched for signs of progress in negotiations to end a conflict that has lasted more than a month.

Economic data showed the U.S. services sector expanded in March but at a slower-than-expected pace. Employment in the sector contracted, while prices paid, a key inflation indicator, rose to their highest level since October 2022.

Oil Climbs as Iran Ceasefire Deadline Nears

Oil prices traded higher as shipping traffic through the Strait of Hormuz remained limited. Brent crude futures rose 1.5% to $111.45 a barrel, while U.S. West Texas Intermediate futures gained 2.4% to $115.14 a barrel.

At a Monday press conference, President Trump said any ceasefire agreement must include a guarantee from Iran to reopen the strait. He set an 8 p.m. Eastern time Tuesday deadline and warned of strikes on bridges and power plants across Iran if no deal is reached, saying such action would leave damage that would take “100 years to rebuild.”

Broadcom–Google AI Deal and Samsung’s Earnings Surge

Broadcom shares advanced in extended trading after the company signed a long-term agreement with Google to develop and support custom next-generation artificial intelligence-optimized processors. Broadcom will also supply networking and other components for Google’s AI racks through 2031. Separately, Broadcom agreed to provide AI startup Anthropic with access to about 3.5 gigawatts of computing capacity based on Google’s AI processors starting next year. Analysts at Vital Knowledge said the agreements indicate upside risk to Broadcom’s prior guidance for AI revenue of more than $100 billion in 2027.

Samsung Electronics projected a sharp rebound in first-quarter earnings on strong AI chip demand. The company forecast operating profit of about 57.2 trillion won ($38 billion) for January–March, more than eight times higher than 6.69 trillion won a year earlier. Revenue is expected at around 133 trillion won, up from 79.14 trillion won in the same period last year.

Pershing Square Moves on Universal Music Group

Amsterdam-listed shares of Universal Music Group rose more than 14% after Pershing Square Capital announced an offer to acquire the company in a cash-and-stock deal valued at over 55 billion euros. Under the proposal, Universal would merge with Pershing Square Sparc Holdings, creating a new entity based in Nevada with its stock listing moved to the New York Stock Exchange.

FAQ

Why are U.S. stock futures lower today?
U.S. stock futures are lower as investors adopt a cautious stance ahead of President Trump’s deadline for Iran to agree to a ceasefire and reopen the Strait of Hormuz, alongside softer-than-expected U.S. services sector data.

What is driving the recent rise in oil prices?
Oil prices are supported by constrained shipping traffic through the Strait of Hormuz and geopolitical risks tied to Trump’s threat of strikes on Iranian infrastructure if no ceasefire deal is reached by Tuesday evening.

What is significant about Broadcom’s new agreements?
Broadcom’s long-term deal with Google on AI-optimized processors and infrastructure, as well as its computing capacity arrangement with Anthropic, highlight a deepening role in AI hardware and may pose upside risk to its previous AI revenue guidance for 2027.

How strong are Samsung Electronics’ preliminary results?
Samsung Electronics expects first-quarter operating profit of about 57.2 trillion won, more than eight times last year’s 6.69 trillion won, with revenue projected to rise to around 133 trillion won from 79.14 trillion won, driven by robust AI chip demand.