U.S. stock futures slip as semiconductor weakness puts payrolls in focus

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U.S. stock futures and payrolls focus

Highlights

Nvidia falls 1.5%, with Intel, Micron, AMD, and Broadcom dropping 2% to 3.8% as semiconductor stocks lead premarket declines ahead of payrolls data.
E-mini futures show Dow up 0.22%, S&P 500 down 0.34%, and Nasdaq 100 down 0.82% at 05:14 a.m. ET, signaling weakness in tech amid rate-hike uncertainty.
Lululemon plummets nearly 12% after cutting annual profit outlook, while Cooper Companies jumps 4.8% after beating quarterly earnings estimates.

Chipmakers retreat before jobs data

As reported by Reuters, semiconductor stocks are leading premarket declines, with Nvidia down 1.5% and Intel, Micron, AMD and Broadcom falling between 2% and 3.8%. The pullback comes after a strong rally in chipmakers helped lift Wall Street from March lows to record highs, supported by a temporary Middle East ceasefire and solid earnings growth.

Barclays strategist Emmanuel Cau says momentum in AI and semiconductor shares feels shakier, citing crowded positioning, liquidity events linked to large IPOs and policy risks. The Labor Department's report due at 8:30 a.m. ET is expected to show nonfarm payrolls increased by 85,000 in May after rising 115,000 in April, according to a Reuters survey of economists.

At 05:14 a.m. ET, Dow E-minis are up 116 points, or 0.22%, while S&P 500 E-minis are down 26 points, or 0.34%. Nasdaq 100 E-minis are down 250.25 points, or 0.82%.

Fed outlook and weekly market impact

Deutsche Bank strategist Jim Reid says a labor market that remains in decent shape would keep attention on inflation, which has moved further above target amid the energy shock. The employment data arrives ahead of Kevin Warsh's first Federal Reserve policy meeting later this month, as the central bank confronts elevated inflation and a subdued labor market marked by layoffs and fewer hirings.

Money markets expect the Fed to leave rates unchanged into next year. If current losses continue through the session, the S&P 500 will post its first weekly decline since April, while the Nasdaq is on track for a slight weekly loss and the Dow is set to rise for a third straight week.

Citi says it is trimming equity exposure after a strong run, while maintaining a constructive long-term view on U.S. equities supported by AI-driven earnings. Among individual movers, Lululemon Athletica tumbles nearly 12% after cutting its annual profit forecast and projecting second-quarter earnings below Wall Street estimates, while Cooper Companies rises 4.8% after beating estimates for second-quarter results.

In our earlier update on S&P 500 futures slipping ahead of the May jobs report, we noted that investors were paring risk—especially in tech—while waiting for the payrolls data to test the market’s extended winning streak. The piece highlighted the Dow’s record close alongside softer Nasdaq performance, and pointed to the jobs print as a key input for expectations around the Fed’s next policy steps.

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