U.S. markets brace for jobs data as Lululemon drops and Dow hits record

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U.S. markets brace for jobs data

Highlights

S&P 500 futures dip ahead of May jobs report, with economists expecting 80,000 nonfarm payrolls and traders preparing for potential volatility over 1%.
Lululemon shares fall 10% premarket after weak launches and negative media coverage prompt the company to lower its full-year outlook.
Dow Jones Industrial Average rises over 800 points to a record, while sector rotation from technology to insurance and retail depresses the Nasdaq.

Jobs report and market drivers for Friday

As reported by CNBC, futures for the S&P 500 are lower after a mixed Wall Street session, with markets now centered on the May employment report due at 8:30 a.m. ET.

Economists expect nonfarm payrolls to have increased by 80,000 last month, slowing from an average gain of 150,000 over the prior two months. Investors are also watching whether the "low-hire, low-fire" labor backdrop is starting to improve after private payrolls and job openings data earlier in the week came in stronger than expected.

JPMorgan's trading desk says the S&P 500 could move by more than 1% depending on the headline figure. Prediction market traders, meanwhile, are positioning for a reading that tops Wall Street expectations, while long-term unemployment remains under scrutiny after the number of Americans jobless for at least 27 weeks swelled 55% in a given month this year compared with 2023.

Lululemon is another major premarket focus, with shares down 10% before the bell after weak product launches and negative media attention pushed the retailer to cut its full-year outlook. In chips, Broadcom leads semiconductor names lower after posting its worst trading day since early 2025 following a disappointing earnings report.

Sector shifts, new listings and consumer spending signals

The Dow Jones Industrial Average climbed more than 800 points in the previous session to a fresh record high, while the Nasdaq Composite pulled back as traders rotated away from technology and toward older-economy sectors such as insurance and retail. Friday's session is set to determine whether the S&P 500 secures a 10th straight winning week, which would mark its first such streak since 1985.

Bitcoin is also on track for its worst week since February, underscoring weaker appetite for riskier trades. Quantinuum, meanwhile, finishes its Nasdaq debut little changed, leaving the quantum computing company's market value at $15.7 billion; Chief Executive Rajeeb Hazra says adoption remains early, but demand for quantum computing resources is certain.

Outside financial markets, U.S. agriculture officials are working to contain and eradicate a flesh-eating New World screwworm after a case is detected in a calf in Texas, the first known U.S. case since 2017. Consumer spending on live entertainment remains resilient as the 2025-2026 Broadway season reaches a record $1.9 billion in ticket sales, helped by a 1.7% increase in average ticket prices ahead of this Sunday's Tony Awards.

Our earlier update on S&P 500 futures ahead of the May U.S. jobs report explained how investors were positioning cautiously after a mixed session that left the Dow at a record while tech lagged. We noted that the payrolls print was expected to show 80,000 jobs added, with the result likely to sway Fed rate-cut expectations and determine whether the S&P 500 could extend its rare 10-week winning streak. The report also highlighted pressure from Lululemon’s lowered outlook and continued softness in AI-linked tech names.

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