Nasdaq futures plunge 300 points: 5 things to know before Wall Street opens

• Major chipmakers led declines in premarket trading: Nvidia down 1.5%, while Intel, Micron, AMD, and Broadcom dropped 2% to 3.8%
• May nonfarm payrolls expected to show 85,000 jobs added (down from 115,000 in April); stronger data could reduce odds of Fed rate cuts
• Lululemon plunged 12% after cutting annual profit guidance and missing Q2 estimates, raising concerns about consumer discretionary spending

Market Summary: Nasdaq Futures Plunge on Chip Selloff Ahead of Jobs Report

Market Movement:

U.S. equity futures turned sharply lower Friday morning, with Nasdaq 100 futures plunging 1.02% and S&P 500 futures declining 0.49%. The technology-heavy Nasdaq was on track for its first weekly decline since April.

Semiconductor Selloff:

Major chipmakers led premarket losses as investors took profits following an AI-fueled rally. Nvidia dropped 1.5%, while Intel, Micron, AMD, and Broadcom fell between 2% and 3.8%. The sector had driven Wall Street's rebound from March lows but now faces vulnerability due to crowded positioning after substantial gains.

Key Economic Data:

Markets await the May nonfarm payrolls report (8:30 AM ET), with economists expecting 85,000 jobs added versus 115,000 in April. A stronger-than-expected report could signal labor market resilience, potentially keeping inflation pressures elevated and reducing the likelihood of Federal Reserve rate cuts. The unemployment rate and wage growth figures will be closely monitored for Fed policy implications.

Corporate Movers:

Lululemon Athletica plummeted nearly 12% after cutting its annual profit forecast and issuing second-quarter guidance below Wall Street estimates, raising concerns about consumer discretionary spending. Cooper Companies rose 4.8% after beating second-quarter earnings expectations.

Geopolitical Concerns:

Hezbollah's rejection of a Lebanon ceasefire complicates diplomatic efforts and poses risks to oil prices and inflation expectations, potentially affecting Federal Reserve policy decisions.

Market Implications:

The combination of profit-taking in high-momentum tech stocks, upcoming employment data, and weakening consumer demand signals suggests increased near-term volatility and potential sector rotation away from growth-oriented technology names.