US Stock Market Futures Decline Amid Shift in Investor Sentiment
US Stock Market Set to Open Lower on Friday Amid Chip Stock Rotations
The US stock market is expected to open lower on Friday, June 5, as investors rotate out of chip stocks and into non-tech sectors. Futures tied to the S&P 500 slipped 0.5%, while Nasdaq futures plummeted more than 1%. In contrast, futures linked to the Dow Jones Industrial Average were up 63 points, or 0.1%.
The rally in chip stocks, which had propelled Wall Street to multiple record highs, came to a halt in Thursday's session following Broadcom's fiscal second-quarter numbers and its decision not to raise AI revenue expectations for fiscal 2026 and 2027, disappointing Wall Street investors. This weaker outlook also dragged several chip stocks lower, prompting investors to shift back toward sectors such as financials and consumer stocks.
Meanwhile, the S&P 500 was down 0.4% for the week, and if it finishes lower, the benchmark will miss out on a 10th straight week of gains, which would have marked its longest winning streak since 1985. Investors are also looking for signs of progress in the US-Iran peace talks, while uncertainty persists over a ceasefire between Israel and Lebanon.
In the bond market, Treasuries were little changed ahead of Friday's jobs report for May, with the 10-year yield at 4.47%. The dollar was also headed for its biggest drop in more than a week. The Federal Reserve's upcoming meeting later this month could be influenced by the jobs report, which is expected to show that companies, non-profits, and government agencies added 105,000 jobs last month, according to an AP report citing a survey of forecasters by data firm FactSet.
Hiring has bounced back this year from a weak 2025, showing unexpected resilience despite economic uncertainty and persistently high energy prices triggered by the Iran conflict. The data comes ahead of new Federal Reserve Chair Kevin Warsh's first policy meeting later this month, as he takes charge of an economy grappling with elevated inflation—partly exacerbated by the Middle East conflict—and a subdued labor market marked by layoffs and slower hiring.
| Company | Pre-Market Price Change |
|---|---|
| Nvidia | -1.5% |
| Intel | -2% |
| Micron | -2.5% |
| AMD | -2.8% |
| Broadcom | -3.8% |
| Cooper Companies | +5.6% |
| Lululemon Athletica | -12.5% |
Crude oil prices remained flat, trading near $95 per barrel for Brent crude futures and $93 per barrel for WTI crude oil futures. Although prices remained largely unchanged in Friday's session, crude oil was still up more than 6% for the week. However, the risks have not completely faded, with US-Iran negotiations remaining stalled, and Iran suspending talks in response to Israeli military activity in the region, keeping energy prices highly sensitive to any further escalation.
Read also: SEBI Approves Listings for Oravel Stays and Four Other Companies
Investor Takeaway
Investors should be cautious of a potential shift in market sentiment and adjust their portfolios accordingly.
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