NEW YORK, August 6, 2026, 09:02 EDT – U.S. stock index futures turned lower on Wednesday, with Nasdaq futures under the most pressure as some top artificial intelligence stocks confronted stronger earnings expectations.
- U.S. cash markets are set to open at 09:30 EDT. Dow futures gained roughly 0.2%, while Nasdaq 100 futures slipped 0.6%.
- Before the market opened, four growth stocks fell by 10% to 19%, although most reported strong quarterly earnings.
- First-time claims totaled 199,000, coming in lower than expected. Early estimates show second-quarter productivity up 1.4%.
U.S. stock futures traded mixed on Thursday, with investors scaling back positions in AI-related stocks. The Nasdaq 100 underperformed, despite jobless claims coming in lower than expected.
The significance lies in the fact that prices are being influenced by expectations more than by actual demand. The same trend appeared on Wednesday. The Dow rose 0.49% to reach an all-time high, as the Nasdaq Composite fell 0.83%.
| Market gauge | Thursday premarket | Wednesday session | Immediate signal |
|---|---|---|---|
| Dow futures / industrials | +0.2% | +0.49% to 54,349.06 | Blue-chip stocks stay firm |
| S&P 500 futures / index | +0.1% | -0.17% to 7,723.52 | Major indexes little changed |
| Nasdaq 100 futures / Composite | -0.6% | -0.83% to 26,363.44 | Investors cut risk in growth names |
| U.S. 10-year yield | 4.64% | 4.65% area | Limited improvement in yield moves |
Numbers are rounded and represent the premarket view after claims.
Western Digital NASDAQ:WDC, Sandisk NASDAQ:SNDK, Datadog NASDAQ:DDOG, and AppLovin NASDAQ:APP were the four growth stocks that stood out during the morning session.
| Company | Premarket move | Reported evidence | What disappointed investors |
|---|---|---|---|
| Western Digital | -15.2% | Adjusted EPS $3.56 exceeded $3.31; revenue was $3.75 billion | Guidance for the next quarter was only marginally above projections |
| Sandisk | -10.2% | Adjusted EPS stood at $39.25; revenue totaled $8.97 billion | Revenue outlook for $10.3 billion-$10.8 billion fell short of the $10.82 billion midpoint expectation |
| Datadog | -15.0% | Revenue grew 36% to $1.12 billion; full-year forecast was increased | Optimism had already been priced in after shares doubled this year |
| AppLovin | -18.5% | Earnings per share hit estimates at $3.76 | Revenue and adjusted EBITDA came in below forecasts; guidance for Q3 was weak |
Western Digital shares surged over three times in 2026, while Sandisk saw an increase of more than fivefold. Both companies significantly outperformed the semiconductor index, which gained close to 70%, and the S&P 500’s 12.8% rise.
Luke Lango, chief technology analyst at InvestorPlace, commented that markets had factored in expectations of “outright acceleration.” According to him, results described as “merely excellent” were now insufficient to meet that threshold. Reuters
Selling pressure hit hardware stocks broadly. Seagate Technology NASDAQ:STX slipped 3.6%. Micron Technology NASDAQ:MU dropped 3.7%. Advanced Micro Devices NASDAQ:AMD, Marvell Technology NASDAQ:MRVL, and Intel NASDAQ:INTC each slipped roughly 1%.
Broker recommendations have remained unchanged even as market prices shifted. Each of the four companies continues to hold Buy or Overweight consensus ratings.
| Company | Consensus | Positive / Hold / Negative ratings | Median target | Implied move from August 5 close |
|---|---|---|---|---|
| Western Digital | Overweight | 23 / 5 / 2 | $620.00 | +19% |
| Sandisk | Overweight | 23 / 6 / 1 | $2,500.00 | +85% |
| Datadog | Buy | 44 / 3 / 3 | $292.50 | +3% |
| AppLovin | Buy | 32 / 4 / 0 | $650.00 | +56% |
Buy and Overweight ratings are included as Positive. Underweight and Sell are combined as Negative.
The difference stands out. Prior to Thursday’s decline, Datadog’s median target implied just a 3% gain. For Sandisk, the implied upside reached 85%. The movements in share prices indicate that ratings by themselves provide limited defense when market positioning is saturated.
Economic indicators offered no decisive trigger for rate cuts. Initial jobless claims edged up by 1,000 to 199,000, compared with the expected 202,000. Continuing claims climbed by 24,000 to reach 1.801 million.
Nonfarm productivity rose by 1.4% in the second quarter, preliminary data showed, outpacing the market forecast of 0.6%. Unit labor costs climbed 1.3%, and real hourly compensation declined by 3.1% at an annualized rate.
| U.S. indicator | Latest | Consensus | Previous or comparison |
|---|---|---|---|
| Initial jobless claims | 199,000 | 202,000 | 198,000 |
| Continuing claims | 1.801 million | — | 1.777 million |
| Preliminary Q2 productivity | +1.4% | +0.6% | +0.8% revised |
| Q2 unit labor costs | +1.3% | — | +1.3% revised |
| Consensus payrolls for July | 80,000 | 80,000 | 57,000 for June |
| Estimated July jobless rate | 4.2% | 4.2% | 4.2% |
The 10-year Treasury yield dipped marginally to 4.64%. Futures markets continued to reflect nearly even odds for the U.S. Federal Reserve to either pause or increase rates in September. Brent crude hovered near $80 as market participants monitored talks in the Middle East.
Wells Fargo NYSE:WFC chief U.S. economist Tom Porcelli stated that “higher long-term rates are not going away anytime soon.” He pointed to the continued strength of the economy, robust corporate earnings, and expectations for productivity boosted by AI investment. Reuters
The upcoming employment report on Friday is seen as the next key test for the index. Analysts anticipate around 80,000 jobs to be added, up from 57,000 in June. The jobless rate is projected to hold steady at 4.2%.
Risks: Solid payroll data, rising oil prices, or stalled Middle East negotiations may push yields up and intensify the pullback in growth stocks. Conversely, disappointing jobs numbers or confirmed peace agreements could swiftly trigger a reversal of this rotation.
The investor read is limited but significant. Demand for AI continues to be robust. There is a shift in what valuations markets will accept. Unless prices or expectations adjust, momentum stocks could remain vulnerable even if they deliver earnings beats.
Related articles: NASDAQ:WDC
