U.S. equity futures were mixed on Thursday as investors focused on the upcoming June employment report, expected to play a key role in shaping expectations for future interest rate decisions. The performance of technology shares remained under scrutiny amid continued weakness following a sharp decline in South Korean chip stocks.
At 4:30 p.m. (Bangkok Time), futures linked to the Dow Jones Industrial Average recovered initial declines to register a modest gain of 17 points, or 0.03%. In contrast, contracts tracking the S&P 500 ticked down 0.09%, while Nasdaq-100 futures faced a steeper loss of 0.4%.
Technology stocks experienced ongoing pressure, highlighted by a 7.89% drop in South Korea’s Kospi index. The decline followed steep losses in leading chipmakers SK Hynix and Samsung Electronics, whose shares tumbled more than 14% and 9% respectively. This downturn reflects concerns in the semiconductor space, even after Samsung announced a significant investment tied to artificial intelligence initiatives.
The pullback extended declines seen on Wednesday, when the major U.S. indices finished in negative territory. After rallying by over 400 points earlier in the session, the Dow closed 0.03% lower. Meanwhile, the S&P 500 slipped 0.22% and the Nasdaq Composite declined by 0.66%, pressured by ongoing weakness in semiconductor stocks.
Investor sentiment remained subdued as the market processed Federal Reserve Chairman Kevin Warsh’s recent comments, emphasizing the need for data-based decisions on interest rates rather than relying on central bank guidance. Uncertainty around U.S.-Iran negotiations further contributed to the cautious mood.
Attention now shifts to the official June nonfarm payrolls figures, due at 8:30 a.m. (Eastern Time). Consensus estimates suggest the U.S. economy added 115,000 jobs during the month, with the unemployment rate holding steady at 4.3%. The report follows mixed economic figures earlier this week, and signs of persistent strength in employment could heighten expectations for a potential rate increase within the year.
