NEW YORK, June 5, 2026, 06:01 (EDT)
- Nasdaq 100 futures dropped 0.91% and S&P 500 futures slid 0.41%. Dow futures managed to gain 0.12% in early trade.
- Economists expect the May payrolls report before the open. Consensus is for hiring to slow, but stay positive.
- Broadcom’s AI-related miss weighed on chip stocks. The Dow ended Thursday at a record close.
U.S. stock futures looked mixed early Friday as tech shares slipped, with traders pulling back on AI names before the labor-market numbers. At 5:20 a.m. ET, Nasdaq 100 futures dropped 278 points, or 0.91%. S&P 500 futures lost 31.5 points, or 0.41%, but Dow futures added 60 points, or 0.12%, according to premarket data. Futures are contracts traded ahead of the market open and can give an early read on sentiment, but prices are only indicative.
Cash trading hadn’t started. The NYSE’s regular session goes from 9:30 a.m. to 4 p.m. ET. June 5 doesn’t show up on the exchange’s 2026 holiday list.
Jobs data is in focus this morning. The nonfarm payrolls report, the key read on U.S. hiring each month, drops at 8:30 a.m. ET. April’s report put payrolls up 115,000 with unemployment at 4.3%.
Broadcom slipped after missing Street revenue forecasts for the second quarter and guiding current-quarter AI chip revenue to $16 billion, under Visible Alpha numbers. The chipmaker kept its 2027 AI sales target the same. That’s key since Broadcom faces off against Nvidia and Marvell in custom AI chips. Investors have bid the stock up betting on that expansion. “They just didn’t raise it,” Creative Strategies CEO Ben Bajarin said. “The chip rally demands perfection,” said Ryan Lee at Direxion. Reuters
Asia-Pacific stocks were lower outside Japan, with the region’s shares down 2.23% after South Korea’s Kospi dropped as much as 7%, Reuters said. Sellers kept pushing on AI-linked names, and Nasdaq and S&P 500 futures moved down. “The issue is not that AI demand has disappeared,” said Charu Chanana, chief investment strategist at Saxo. “It is that expectations had become extremely high.” Reuters
Wall Street ended Thursday with uneven results. The Dow surged 874.86 points, or 1.7%, landing at a record 51,561.93. The S&P 500 managed a 0.4% gain to 7,584.31. The Nasdaq lost 0.1% to 26,830.96, as losses in chip stocks cut into gains for financial and healthcare shares.
US payrolls are likely to increase by 85,000 in May, according to a Reuters poll, following a 115,000 gain in April, while the unemployment rate is seen steady at 4.3%. Brian Bethune, economics professor at Boston College, said tariff and tax refunds have provided corporate support and that “the environment remains positive, although not terrific.” Reuters
Jobless claims came in softer, with initial claims up by 13,000 to 225,000 for the week ended May 30. That’s the highest print since early February. Economists said layoffs are still low. Oliver Allen, senior U.S. economist at Pantheon Macroeconomics, said the labor market is “low fire, low hire.” Reuters
Inflation is still a big factor in the market. U.S. services activity pushed higher in May, as the ISM services PMI came in at 54.5. That’s above 50, so it points to growth. Prices paid jumped too, marking the highest since August 2022. Priscilla Thiagamoorthy at BMO Capital Markets said that’s probably enough for Fed officials to keep waiting.
The setup is up in the air. A strong jobs report could spark worries that the Federal Reserve holds rates high, more so if pay rises fast. If the number is weak, markets may get more nervous about growth and call the AI drop something more than just profit-taking. Oil is in play too, with Brent trading near mid-$90s as the Middle East keeps supply worries alive.
Premarket trading looks focused. Investors are sticking with the bigger bull view but want more from the top AI stocks. There could be news before the open.
