Futures fall as oil jumps and Apple sets $30bn Broadcom chip deal

US equity futures weakened Wednesday, with Dow futures down 400 points and S&P 500 and Nasdaq futures also sharply lower, according to CNBC’s Jim Cramer. WTI crude rose 4% after President Donald Trump said the Iran war ceasefire was “over” and the U.S. military said it carried out retaliatory strikes against Iran after three ships were hit in the Strait of Hormuz.

Cramer said pressure also persisted in semiconductor shares and companies tied to artificial intelligence data centers, extending sharp losses from the previous session. He described the move as a reversal after rapid gains in parts of the AI trade.

Apple and Broadcom expand domestic chipmaking agreement

Apple announced plans to spend more than $30 billion under a chip-supply agreement with Broadcom, which CNBC said is Apple’s largest U.S. manufacturing commitment to date. The arrangement is expected to result in more than 15 million chips made in the United States.

Broadcom disclosed Monday that it had expanded its partnership with Apple through 2031. Its connectivity chips are used to link Apple devices to cellular networks, Wi-Fi and Bluetooth. Cramer said both Apple and Broadcom were indicated slightly lower before the open.

Analysts adjust calls across sectors

Wells Fargo upgraded Old Dominion Freight Line to buy from hold, citing further improvement in the freight cycle. The bank’s analysts acknowledged investor concerns that freight equities may already reflect much of the recovery, while saying it was “too early to get defensive,” according to Cramer.

JPMorgan downgraded Ollie’s Bargain Outlet to hold from buy, with analysts expecting second-quarter comparable sales to fall short of expectations. The firm cited promotional activity above plan, which it said could pressure comparable sales and gross margin.

Wells Fargo raised its Kraft Heinz price target to $25 from $23 while maintaining a hold rating. The bank said market-share trends are improving, but kept a cautious stance because it views valuation as full until North American top-line growth resumes, according to Cramer.

Keefe, Bruyette & Woods cut Travelers to hold from buy after gains of more than 18% this year and 34% over the past 12 months. The analysts said the property insurer’s valuation now looks appropriate and noted that rate increases are slowing.

Goldman Sachs upgraded RH to hold from sell and lifted its price target to $155 from $86. That target remains below the prior close of $163.70. Goldman analysts said the luxury home furnishings company could see stronger sales and margin improvement in 2027 after several earnings misses, according to Cramer.

Wells Fargo raised its Monster Beverage price target to $105 from $97 and reiterated a buy rating. The bank said the stock’s premium valuation was supported by its history and current fundamentals. Cramer noted that Monster shares have climbed more than 1,300% over 15 years, compared with a 458% gain for the S&P 500.

Wells Fargo began coverage of AT&T with a sell rating and an $18 price target, implying nearly 15% downside, according to Cramer. The analysts cited potential broadband competition from SpaceX’s Starlink and longer-term risks from Starlink’s mobile ambitions. AT&T shares were down more than 20% over the prior three months.

This story draws on original reporting from CNBC.