US Futures Lower as Traders Await Key Jobs Data

Key Moments

Futures Retreat as Chip Stocks Lose Momentum

U.S. equity index futures traded mixed on Friday, with pressure from semiconductor names weighing on broader benchmarks as investors adopted a cautious stance ahead of the May employment report.

Chipmakers led declines in premarket trading. Nvidia, currently the largest company by market capitalization, slipped 1.5%, while Intel, Micron, AMD and Broadcom declined between 2% and 3.8%.

Recent gains in semiconductor shares have played a central role in propelling Wall Street from its March lows to fresh record levels, alongside support from a temporary Middle East ceasefire and robust earnings growth.

“Momentum in AI/Semis feels more shaky,” Barclays strategist Emmanuel Cau said, citing crowded positioning, impending liquidity events tied to large IPOs and policy-related risks.

Labor Market Data in Focus Ahead of Fed Meeting

Attention was set to shift to the Labor Department’s May jobs report due at 8:30 a.m. ET. Economists in a Reuters survey expected nonfarm payrolls to have risen by 85,000 in May, following an increase of 115,000 in April. The anticipated pace was viewed as broadly consistent with a stable labor market.

“So long as the labour market stays in decent shape, that will keep the focus on the inflation side of the Fed’s mandate, which has moved increasingly above target given the energy shock,” Deutsche Bank strategist Jim Reid said in a note.

The employment data arrives ahead of new Federal Reserve Chair Kevin Warsh’s first policy meeting later this month. Warsh takes over as the central bank confronts elevated inflation, partly intensified by the Middle East conflict, and a softer labor market characterized by layoffs and slower hiring.

Money markets were pricing in no change in interest rates into next year.

Geopolitics and Policy Backdrop

On the geopolitical front, Hezbollah rejected a new Lebanon ceasefire, while Israel maintained that its forces would remain in place. The developments posed a setback to U.S. President Donald Trump’s efforts to halt the fighting and advance negotiations with Tehran.

Citi said it was cutting equity exposure following a strong market run, after having turned bullish when the Middle East ceasefire first took hold in April. The firm highlighted rising inflation and positioning risks but maintained a positive longer-term stance on U.S. stocks, underpinned by AI-driven earnings growth.

Index Futures and Weekly Trajectories

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

If these moves were to persist through the session, the S&P 500 would log its first weekly loss since April. The Nasdaq, which is heavily weighted toward technology, was also positioned to end the week modestly lower, while the price-weighted Dow was on track for a third consecutive weekly gain.

Index Eligibility and IPO Implications

S&P Global stated that it would not alter eligibility rules for its major indices. That stance effectively prevents a rapid inclusion of Elon Musk’s SpaceX in the flagship S&P 500, in connection with what would be the world’s largest IPO.

Notable Stock Movers

In individual names, Lululemon Athletica tumbled nearly 12% after the athletic apparel company reduced its full-year profit guidance and projected second-quarter earnings that came in well below Wall Street expectations.

By contrast, Cooper Companies gained 4.8% after the contact lens manufacturer exceeded forecasts for its second-quarter results.