S&P 500, Nasdaq Futures Climb While Dow Futures Fall Ahead Of Key Jobs Report: META, MU, JACK, CEG Stocks In Focus

U.S. private employers added 98,000 jobs in June, according to ADP, as investors await Thursday’s payrolls report for clues on the labor market and interest rates.

• U.S. stock markets closed lower on Wednesday amid a selloff in technology and semiconductor stocks. 
• Federal Reserve Chair Kevin Warsh said at the ECB Forum on Central Banking in Portugal that he is optimistic about AI, adding that it will create more jobs. 
• Crude oil prices retreated late Wednesday as markets closely watched developments between the US and Iran.

U.S. stock futures traded mixed in the overnight session late Wednesday after closing lower amid a selloff in technology and chip stocks on the first trading day of July ahead of the latest non-farm payrolls report.

Nasdaq 100 futures increased 0.30%, S&P 500 futures climbed 0.06%, while Dow futures were down 0.07%  at 9:28 PM EDT.  

Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY), the Invesco QQQ Trust (QQQ) and the SPDR Dow Jones Industrial Average ETF Trust (DIA) were all trading higher at the time of writing.

The iShares 20+ Year Treasury Bond ETF (TLT) was trading up 0.02% amid ‘neutral’ sentiment.

How Did US Markets Fare On Wednesday?

The benchmark indexes closed largely lower on the first trading day of the new quarter after a strong rally in the previous quarter. The Nasdaq Composite led the decline, shedding about 173 points to close 0.66% down, while the S&P 500 lost 0.22% at close. The Dow also slipped 0.03% after a record close in the previous session.

Index	Move	Close
Dow Jones Industrial Average	-0.03%	52,305.24
S&P 500	-0.22%	7,483.23
Nasdaq Composite	-0.66%	26,040.03

US Market Drivers

U.S. stock markets got off to a weak start in the third quarter of 2026 as investors rotated out of technology and chip stocks amid faltering sentiment.

Micron Technology (MU) and Sandisk Corp. (SNDK) fell more than 10% each, while Advanced Micro Devices Inc. (AMD) lost nearly 7% at close. The declines weighed heavily on the VanEck Semiconductor ETF (SMH), which lost 5.4%.

“One of the characteristics of the bull market has been rotation. The attribute has been on full display in 2026,” Rob Anderson, Ned Davis Research strategist, wrote in a research note as per CNBC.

“A passing of the baton to a non-commodity cyclical sector would be further evidence that the stock market is entering the second half of the year in a position of strength and that the bull market can continue deep into the second half of the year,” he added.

Meanwhile, Federal Reserve Chairman Kevin Warsh said that he is optimistic about artificial intelligence, dismissing fears that it will cause widespread job losses.

During an interview at the ECB Forum on Central Banking in Sintra, Portugal, Warsh emphasized that he believes AI-driven job creation will be strong. “It’s called the lump of labor fallacy for a reason. Who knew when the internet was born that it would create a million and a half jobs as Uber drivers? We’re only in the first or second inning of this revolution,” he added.

While the Fed Chair did not provide any clear signals about the central bank’s policy decisions in the meeting later this month, he did highlight that inflation levels were currently “too high.”

“We’re all in the price stability business; that might not be our only business, but if there was a common thing I heard over the last couple of days, it was open-mindedness on these questions of AI, open-mindedness on productivity. But we’ve all looked around, and we’ve seen that prices are too high,” he said.

On the geopolitical front, reports indicated that Iran said it would not meet with senior U.S. envoys who traveled to Doha, Qatar, after recent hostilities. Meanwhile, a fresh round of indirect talks in Doha ended without any major breakthroughs, Reuters reported, noting that discussions were largely focused on implementing the interim agreement and addressing traffic movement through the Strait of Hormuz.

On the economic front, data from ADP showed that hiring by private sector employers in June continued to grow, with companies adding a net 98,000 jobs in June. This report comes ahead of Thursday's non-farm payroll report, which will provide cues on the state of the labor market and, subsequently, on interest rate expectations this year.

U.S. stock and bond markets will be closed on Friday, July 3, in observance of Independence Day.

Trending Stocks To Watch

Meta Platforms Inc. (META): The technology giant’s shares closed nearly 9% higher after reports indicated that the company is looking to enter the AI cloud infrastructure market.

Micron Technology Inc. (MU): The chipmaker’s stock was in focus after it bled more than 10% on Thursday amid a persistent memory shortage and a selloff in semiconductor stocks.

Jack In The Box, Inc. (JACK): The American restaurant chain was back in focus after shares jumped over 10% at close amid a wave of short-covering activity and fresh institutional demand following additions to FTSE Russell U.S. Index benchmarks during the June 2026 index reconstitution.

Constellation Energy Corporation (CEG): The company’s shares declined nearly 5% after a price target cut on the company from Citi.

Global Market Trends

Crude oil prices retreated late Wednesday as markets closely watched developments between the US and Iran. At the time of writing, Brent crude futures expiring in August were trading at around $70.75 per barrel. Meanwhile, WTI crude futures expiring in August fell by about 1.33% to $67.67 per barrel.

Yields on the 10-year Treasury climbed to 4.483% at the time of writing, while spot gold prices rose to around $4,048.72 an ounce.

Asian markets trailed US markets lower at the open on Thursday. South Korea's KOSPI, China’s SSE Composite index and Japan’s Nikkei 225 all declined at the time of writing. Australian stocks were also lower at the open.

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