U.S. stock futures traded lower on Thursday as investors awaited the release of the June non-farm payrolls report, a key economic indicator that could shape expectations for Federal Reserve policy. Falling oil prices and renewed weakness in semiconductor shares also weighed on market sentiment during the final trading session of the holiday-shortened week.
Wall Street futures retreat ahead of key data
As of 07:13 GMT, Dow Jones futures were down 95 points, or 0.2%, while S&P 500 futures fell 22 points, or 0.3%. Nasdaq 100 futures underperformed, dropping 250 points, or 0.8%.
The previous session saw U.S. markets finish lower after semiconductor stocks came under renewed pressure. Reports that Meta Platforms is exploring ways to commercialise excess AI computing capacity added to concerns that demand for new chips could moderate.
Federal Reserve Chair Kevin Warsh acknowledged that inflation risks have eased but maintained that it was too early to provide guidance on future interest rate decisions. Softer-than-expected private employment and manufacturing figures also prompted investors to reduce expectations of a near-term rate increase.
Labour market figures could reshape Fed expectations
The June non-farm payrolls report is expected to show that the U.S. economy added 114,000 jobs, down from 172,000 in May, while the unemployment rate is forecast to remain at 4.3%.
Recent payroll reports have consistently exceeded expectations, reinforcing confidence in the labour market. However, weaker private-sector employment data released earlier this week has raised doubts about whether the Federal Reserve will need to tighten monetary policy further this year.
Crude prices decline as diplomacy continues
Oil prices continued to move lower after officials reported constructive progress in indirect negotiations between the United States and Iran.
Although no agreement has yet been reached, comments from Qatar, President Donald Trump and Vice President JD Vance suggested discussions remain active, easing concerns over supply disruptions through the Strait of Hormuz.
According to Deutsche Bank, “[T]he newsflow helped to bring oil prices down and ease investor concern about inflation.”
Semiconductor sector under renewed pressure
Technology shares across Asia weakened after reports suggested OpenAI had significantly improved the efficiency of its AI models, reducing demand for graphics processors, while Meta is evaluating a cloud platform offering spare AI computing capacity.
The developments weighed on major chipmakers including Samsung Electronics, SK Hynix, Advantest, Tokyo Electron and Taiwan Semiconductor Manufacturing Co.
U.S. set to introduce voluntary AI standards
The Financial Times reported that the Trump administration may unveil voluntary guidelines for advanced artificial intelligence models as early as next week.
The proposed framework would establish common benchmarks for evaluating frontier AI systems before launch, replacing the current case-by-case regulatory approach.
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