Nasdaq futures declined Thursday as investors dumped risk assets, and concerns mounted over the outlook for the U.S. economy.
Futures tied to the Nasdaq-100 dropped 0.4%, while S&P 500 futures dipped 0.1%. Futures tied to the Dow Jones Industrial Average hovered near the flatline.
Investors ditched popular technology and chip stocks as economic worries resurfaced. Nvidia and Advanced Micro Devices lost more than 1%, while Meta Platforms, Microsoft and Alphabet dipped less than 1% each.
Fresh labor market data Thursday sent mixed signals about the health of the U.S. economy as questions linger over whether the Federal Reserve is behind the curve on rate cuts. Private payrolls data showed the weakest growth since 2021, heightening fears of a slowing labor market. However, weekly claims for unemployment benefits declined from the previous week.
The market has shown hyper sensitivity to potential growth scares in recent weeks, including Tuesday’s sell-off on the heels of weak manufacturing data. That puts heightened scrutiny on labor market data, with all eyes on Friday’s August nonfarm payrolls report. A weak July report released last month spurred recession fears and a raft of volatility in August.
“While incoming data is mixed, it is not collapsing, and the global cutting cycle should help the economy achieve a soft landing, extending the cycle into 2025,” said Emmanuel Cau, head of European equity strategy at Barclays. “We see this as a broadly positive environment for equities, but a lot is arguably priced in, and there are a number of wildcards to get through.”
Tesla rose about 3% before the bell after the electric vehicle maker said it plans to launch its full self-driving software in Europe and China early next year. Frontier Communications dropped 10% after Verizon said it would buy the company in a $20 billion deal valuing it below Wednesday’s close. Verizon added 1%.
Thursday’s premarket moves come after the S&P 500 and Nasdaq Composite each closed lower for the second straight session. The Dow squeezed out a gain of 38 points. All three averages are down for the week ahead of Friday’s keynote August nonfarm payrolls report.
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