Stock Market Update

[BRIEFING.COM] The major averages have traded in a stable range throughout the afternoon, with today's gains helping reclaim a decent chunk of Monday and Tuesday's weakness.

After the close, investors will have another modest batch of earnings reports to assess, which includes some notable tech names. Broadcom (AVGO 368.29, -1.39, -0.38%) enters its Q3 (Jul) earnings report with high expectations after outlining rapid AI growth, more than $30 billion of quarterly AI bookings, and major multi-year customer commitments. A quarterly beat alone may not be enough after the stock's recent underperformance, particularly given that Broadcom shares fell sharply following the prior earnings report despite beating estimates. Sentiment hinges on whether management can provide greater confidence that AI revenue will exceed the already ambitious trajectory embedded in the company's FY27 outlook. A stronger AI revenue outlook, healthy margins, and evidence of sustained hyperscaler demand would likely be viewed favorably, while merely meeting guidance could leave investors wanting more.

Expectations are also elevated for Hewlett Packard Enterprise (HPE 52.13, +1.26, +2.48%) after the company's sharp Q2 beat, record backlog, and increased FY26 outlook. The shares remain about 54% above their 200-day average, so the report needs to show that AI and networking demand is converting into revenue and higher margins despite supply constraints and memory inflation.