Nasdaq Futures Drop Again as Tech Slumps, Jobs Data Fuels Uncertainty

Nasdaq Futures Fall for Third Day as Tech Stocks Drop, Economic Data Mixed

Nasdaq futures continued to fall on Thursday as investors moved away from riskier assets, with concerns about the U.S. economy mounting. This marks the third consecutive day of losses for the tech-heavy index, reflecting broader market uncertainty. Ahead of Friday’s critical nonfarm payrolls report, all major indices have posted weekly declines, signaling nervousness about the economic outlook.

At 13:12 GMT, Dow Futures are trading 41059.00, up 8.00 or +0.02%. S&P 500 Index Futures are at 5524.75, down 5.25 or -0.09% and Nasdaq Futures are trading 18900.75, down 61.75 or -0.33%.

Technically, if the downside momentum continues, the Nasdaq-100 Index is likely to see a near-term test of the 200-day moving average at 18543.79. On the upside, pressure will pursist until buyers can overcome the 50-day moving average at 19573.72.

Economic Data Adds to Uncertainty

Recent labor market data released Thursday offered mixed insights into the U.S. economy, further fueling investor unease. Private payrolls for August showed the weakest growth since 2021, with only 99,000 jobs added, well below the expected 140,000. This was compounded by a downward revision of July’s figures to 111,000, signaling a deceleration in hiring. ADP’s chief economist Nela Richardson commented that the labor market’s once rapid growth is now moderating significantly.

However, there were some positive signs in the weekly jobless claims report. Initial unemployment claims fell to 227,000, beating expectations and easing some fears of increasing layoffs. Continuing claims also declined, coming in at 1.838 million, lower than the projected 1.868 million. Despite these mixed signals, the data reflects a slowing labor market, which could influence the Federal Reserve’s monetary policy decisions in the coming months.

Tech Stocks Lead Market Decline

Investors have been unloading major technology and semiconductor stocks, which have been particularly sensitive to concerns over slowing economic growth. Nvidia and Advanced Micro Devices saw losses exceeding 1%, while other tech giants like Meta Platforms, Microsoft, and Alphabet also posted modest declines of less than 1%. These losses have been exacerbated by Tuesday’s weak manufacturing data, raising fears of a broader economic slowdown.

Despite the overall tech sell-off, Tesla stood out with a pre-market gain of nearly 3% after announcing plans to introduce its full self-driving software in Europe and China by early next year.

Stocks Making Significant Moves

Beyond the tech slump, several companies made notable pre-market moves. JetBlue jumped 4.6% after raising its third-quarter revenue outlook, now forecasting results ranging from a slight loss to modest gains compared to last year. Previously, the airline had predicted a revenue decline, so this revision offered investors some relief.

Frontier Communications plunged nearly 10% after Verizon confirmed it will acquire the company in a $20 billion all-cash deal, signaling further consolidation in the telecommunications sector. In contrast, Verizon shares rose 1.2% as investors reacted positively to the strategic value of the acquisition.

Outlook

As investors await Friday’s nonfarm payrolls report, the market sentiment remains cautious. Given the weaker-than-expected private payrolls data, the upcoming report will be closely scrutinized for further signs of labor market weakness.

If Friday’s report disappoints, it could lead to further declines in tech and other growth-sensitive sectors. In the near term, expect volatility to remain high as traders digest the mixed economic data and the Federal Reserve’s potential response. The Nasdaq may see continued pressure, especially if macroeconomic conditions weaken further.