U.S. futures split as investors await June labor data

Highlights

Nasdaq 100 futures fell 0.55% as tech pressure continued.
Dow futures rose 0.06%, outperforming tech-heavy contracts.
Investors are waiting for June jobs data and Fed rate clues.

Tech weakness drives the early move

Nasdaq 100 index futures fell 0.55% to 29,928.00, while S&P 500 index futures declined 0.09% to 7,537.00. Dow Jones Industrial Average futures, meanwhile, rose 0.06% to 52,701.00. The Nasdaq’s underperformance followed another bout of selling in chip and AI-linked shares. Investors have grown more cautious toward the sector after a strong first-half rally left valuations stretched and made the market more sensitive to any signs of weaker demand or slower returns on AI spending, Yahoo! Finance reports.

The pressure was not limited to Wall Street. South Korea’s Kospi fell almost 8%, weighed down by a sharp sell-off in semiconductor shares, according to market updates. Memory-chip makers SK Hynix and Samsung Electronics were among the hardest hit after recent enthusiasm around AI infrastructure gave way to profit-taking.

That weakness helped explain why the Nasdaq was hit harder than the Dow. The Dow includes fewer large technology and semiconductor names, making it less exposed to the latest pressure on AI-related stocks.

Jobs data takes center stage

The main event for investors is the June nonfarm payrolls report, due at 8:30 a.m. ET. Economists expect the U.S. economy to have added about 115,000 jobs in June, while the unemployment rate is expected to hold at 4.3%.

The data could shape expectations for the Federal Reserve’s next move. A stronger-than-expected labor report may reinforce concerns that the economy remains too firm for policymakers to ease policy soon. A weaker number could support the case that the Fed has more room to wait.

Markets are also parsing recent comments from Fed Chairman Kevin Warsh, who has urged investors to focus on incoming data rather than relying on forward guidance from the central bank.

A narrow test for market confidence

The mixed futures market shows how dependent sentiment has become on technology leadership and economic data. The Nasdaq remains vulnerable to selling in AI and chip stocks, while the Dow’s slight gain suggests investors are not abandoning equities broadly.

The jobs report could decide whether Thursday’s early caution turns into a deeper pullback. If hiring looks resilient, traders may price in a higher chance of another rate hike this year. If the labor market cools, pressure on growth stocks could ease, though concerns about AI valuations may remain.

As we previously reported, Brent prices fall as Hormuz Strait tensions ease.

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