Nasdaq futures are indicating another sharp pullback today, as chip stocks cool off
Stocks are set for a lackluster open Friday, after a stronger-than-expected jobs report for May sent bond yields rising and pressured a weakening tech sector. Nonfarm payrolls increased by 172,000 last month, above the 80,000 estimates. At last look, the 10-year Treasury yield cleared 4.5%, as interest-rate hike expectations grew.
Futures on the S&P 500 Index (SPX) are modestly lower, while Dow Jones Industrial Average Index (DJIA) futures have pared a triple-digit gain. Nasdaq-100 Index (NDX) futures are pointed sharply lower, with chip stocks under pressure once more.
Continue reading for more on today's market, including:
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- Plus, where the chip selloff spilled, and two retailers brushing off lackluster reports.
5 Things You Need to Know Today
- The Cboe Options Exchange saw more than 2.8 million call contracts and 1.2 million put contracts traded on Wednesday. The single-session equity put/call ratio fell to 0.77, while the 21-day moving average fell at 0.56.
- The chip selloff spilled over into the memory sector, with Micron Technology (NASDAQ:MU) last seen down 3% premarket. Micron stock is stepping further away from Wednesday's all-time high of $1,089.29.
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Shares of lululemon athletica Inc (NASDAQ:LULU) are plummeting 11.4% before the bell, after the retailer slashed its full-year outlook, overshadowing a top- and bottom-line beat for the first quarter. The company also made a wider-than-expected cut to its earnings guidance. LULU has been struggling on the charts, already having shed 62.7% over the past 12 months.
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Chipotle Mexican Grill (NYSE:CMG) shares are 1.3% higher in electronic trading, after J.P. Morgan Securities upgraded the chain to "overweight" from "neutral" and hiked its price target to $35 from $32. The burrito maker has shed 23% for the year, though today's move could push the stock away from yesterday's three-year low.
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Investors will be eyeing key jobs data later this week.
Asian Markets Suffer Tech Sector Setback
Asian markets finished firmly lower on Friday as investors continued to monitor U.S.-Iran tensions. The South Korean Kospi slid 5.5% as tech stocks plunged, taking a cue from their U.S. counterparts. Plus, South Korea's labor minister also called on major tech firms to share more of their booming profits with workers and suppliers, warning that the AI-fueled surge in chip-sector earnings could exacerbate wealth disparities. Japan’s Nikkei and Hang Kong’s Hang Seng fell 1.3% and 1.2%, respectively, while China’s Shanghai Composite shed 0.7%.
European markets are brushing off the chip selloff. The French CAC 40 is leading the gains with a 0.6% rise, while London’s FTSE 100 is up 0.5%, and the German DAX adds 0.2%. The pound is moving higher, set for its third-straight weekly gain against the U.S. dollar. Meanwhile, U.K. Housing prices fell an unexpected 0.1% in May.