U.S. equity futures are mixed as another semiconductor selloff offsets relative strength in the Dow. At 5:07 a.m. ET, Dow futures were up 0.29%, S&P 500 futures were up 0.11% and Nasdaq 100 futures were down 0.52%. The Russell 2000 enters the session after declining 0.6% Wednesday, with small caps likely to remain sensitive to today’s labor data and the direction of Treasury yields. Western Digital and SanDisk are leading the renewed AI-hardware pullback, while investors await details of a potential Iran-Oman agreement involving shipping through the Strait of Hormuz.
U.S. equities finished mixed Wednesday. The S&P 500 declined 0.17%, the Dow gained 0.49%, the Nasdaq fell 0.83% and the Russell 2000 lost 0.59%. The Dow recorded another record close, but SpaceX, AMD and Alphabet pressured growth indexes following a sharp multiday rally. The Philadelphia Semiconductor Index fell 1.4%, although it remains more than 6% higher for the week.
Market internals were weaker than the Dow’s advance suggested. Decliners led advancers by 1.15:1 on the NYSE and 1.34:1 on the Nasdaq. Total U.S. exchange volume reached 17.85 billion shares, slightly above the recent 20-session average of 17.34 billion.
Treasury yields eased after weaker private-payroll data. The 2-year yield finished near 4.18% and the 10-year near 4.62%, while the long end also moved modestly lower. Markets reduced the implied probability of a September Fed increase to roughly 55% from 68% earlier in the week.
The DXY is near 99.76, close to a six-week low. The euro is trading around $1.1540, while the dollar is near ¥157.85, with the yen giving back part of the gains generated by last week’s coordinated U.S.-Japan intervention.
Oil remains below $80 as markets assess the proposed Iran-Oman arrangement. WTI is near $75.37 and Brent near $79.70. The potential agreement could restore designated shipping routes through Hormuz, but its terms remain uncertain and traders continue to price some risk of renewed disruption. Gold is holding above $4,275 per ounce after posting its strongest daily gain in roughly six months, supported by lower yields, a softer dollar and reduced expectations for additional Fed tightening.
Wednesday’s economic data pointed to slower hiring but continued services expansion. ADP reported that private employers added 44,000 jobs in July, below the 75,000 consensus and down from 95,000 in June. The ISM Services Index edged up to 54.1 from 54.0, but missed expectations of 54.5.
Thursday’s calendar includes initial jobless claims, second-quarter productivity and unit labor costs at 8:30 a.m. ET, followed by June wholesale inventories at 10:00 a.m. Claims are expected to rise to approximately 202,000 from 197,000. St. Louis Fed President Alberto Musalem is also scheduled to discuss monetary policy, but the greater catalyst is Friday’s July employment report, with consensus centered near 80,000 payroll gains.
Sector Highlights
Sector performance reflected continued rotation away from crowded Technology exposure. Materials led with a gain of roughly 1.3%, while Health Care rose 1.3%, supported by Eli Lilly and Amgen. Financials and Industrials also advanced, while Utilities was the weakest defensive group. Communication Services and Technology lagged as Alphabet, AMD and other AI-linked names declined.
Information Technology
- Western Digital (WDC -15% premarket) and SanDisk (SNDK -9%) fell despite forecasting quarterly revenue above expectations. Both stocks had risen sharply this year, leaving little tolerance for results that failed to exceed elevated AI-storage expectations.
- Micron Technology (MU -3.5%) declined, while AMD (AMD), Marvell Technology (MRVL) and Intel (INTC) each fell more than 1% premarket as the chip and storage correction broadened.
- AMD (AMD -7.0%) declined Wednesday despite issuing an above-consensus revenue forecast, as investors looked for clearer evidence that AI investment is translating into faster earnings and cash-flow growth.
Communication Services
- Alphabet (GOOGL +0.7% premarket) is attempting to stabilize after falling approximately 4% Wednesday following a leadership overhaul in its AI division.
- Meta Platforms (META) and Amazon (AMZN) were modestly higher premarket, continuing to benefit from evidence that hyperscaler AI spending is producing stronger advertising and cloud revenue.
- Disney (DIS +3.6%) advanced Wednesday after exceeding quarterly profit expectations, helped by stronger theme-park results and the success of Toy Story 5.
Industrials
- SpaceX (SPCX +1.5% premarket) rose ahead of the first expiration of its post-IPO share lockup. Shares fell 13.6% Wednesday as investors questioned whether Starlink can continue funding the company’s heavy AI and data-center spending.
Consumer Discretionary
- MercadoLibre (MELI -4.5% after hours) reported record revenue and better-than-expected profit, but margins narrowed as the company increased spending on free shipping and credit-card expansion.
Health Care
- Eli Lilly (LLY +4.9%) rallied after raising its annual revenue forecast as Mounjaro and Zepbound sales exceeded expectations.
- Amgen (AMGN +4.6%) advanced after second-quarter sales increased 9%, helping Health Care outperform the broader market.
Energy
- ConocoPhillips (COP) reports before the open. Production growth, capital spending and management’s view of oil prices following the recent decline toward $75 will be the principal focus.
Consumer Staples
- Keurig Dr Pepper (KDP) and Molson Coors (TAP) report Thursday, with pricing, volumes and consumer demand likely to drive their reactions.
