Key Points
- Futures for the Nasdaq 100 declined 1.0–1.2%, S&P 500 futures retreated approximately 0.5%, Dow futures posted modest gains
- Tech sector pressure followed Broadcom’s revenue forecast that missed elevated market expectations
- May employment data scheduled for 8:30 a.m. ET release, economists forecast 105,000 job additions
- Cryptocurrency markets retreated with Bitcoin declining 2.2% to $62,136 over 24-hour period
- Crude oil prices softened on potential US-Iran diplomatic progress, Brent crude falling to $94.66
Market participants stepped away from technology shares Friday morning as futures contracts declined before the release of May’s employment figures. The artificial intelligence-fueled market advance that propelled indices earlier in the week encountered resistance.
Futures tied to the Nasdaq 100 retreated between 1.0% and 1.2% during pre-opening hours. Contracts linked to the S&P 500 shed approximately 0.5% to 0.6%. Dow-linked futures registered a minor uptick, adding roughly 17 to 29 points.
The Dow reached a fresh record closing level Thursday, supported by strength in healthcare and financial sectors. This stood in stark contrast to technology shares, which faced headwinds following semiconductor manufacturer Broadcom’s quarterly results.
Broadcom Forecast Triggers Tech Sector Weakness
Broadcom’s forward-looking revenue projections fell short of what bullish investors had anticipated. This sparked technology stock declines that extended through overnight Asian market sessions.
South Korea’s Kospi benchmark tumbled 5.5%. Deutsche Bank’s Jim Reid characterized the market action as a “hangover” stemming from Broadcom’s results, where guidance missed heightened expectations.
European semiconductor equities similarly retreated, tracking losses among US and Asian counterparts. Broadcom’s projection shortfall created waves throughout international trading venues.
Employment Data Takes Center Stage
The May nonfarm payrolls release was scheduled for 8:30 a.m. Eastern time. Consensus estimates from FactSet-surveyed economists projected 105,000 net job additions for May.
A figure near that forecast would strengthen arguments for the Federal Reserve to maintain elevated interest rates as part of its inflation-fighting strategy. Traders scrutinized indicators that might alter the Fed’s trajectory.
A stable jobless rate combined with positive payroll growth would signal economic resilience. Such data could validate the Fed’s measured approach toward potential rate reductions.
Cryptocurrencies and Crude Retreat
Bitcoin shed 2.2% during the preceding 24-hour window, settling at $62,136. The downturn continued a recent slide and mirrored the wider risk-averse market sentiment.
Oil prices similarly weakened. Brent crude decreased 0.4% to $94.66 per barrel, while West Texas Intermediate declined 0.7% to $92.36. Market participants continued pricing in prospects for a possible US-Iran diplomatic agreement that might alleviate supply constraints.
The dollar index edged 0.1% lower versus a currency basket. Yields on 10-year Treasury notes declined 2 basis points to 4.47%.
Ambiguity surrounding Middle Eastern diplomatic efforts remained. President Trump indicated US-Iran discussions were approaching their “final” phase, though reports of stalled progress continued influencing market psychology.
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