[US Pre-Market] Nasdaq Under Pressure Ahead of Non-Farm Payrolls, Tech Stocks Extend Pullback, Lululemon Slumps Over 12% Pre-Market

TradingKey - In pre-market trading on Friday, June 5, the three major U.S. stock indices diverged, with technology stocks under significant pressure as investors awaited the release of the U.S. May non-farm payrolls report. As of press time, Dow futures rose 0.19%, S&P 500 futures fell 0.38%, and Nasdaq 100 futures fell 0.96%.

Performance of U.S. stock index futures, Source: Investing

In commodities, WTI ( USOIL) spot crude oil was largely flat around $92.90, while Brent spot crude was at $94.91. Gold ( XAUUSD) spot fell 0.24% to $4,464.47. Crypto assets remained weak, with Bitcoin falling 2.42%, briefly slipping below $62,000 this week, while Ethereum widened its decline, at one point falling below the $1,700 level as risk appetite continued to cool.

Market Movements

Lululemon ( LULU) plunged more than 12% in pre-market trading. The company's first-quarter revenue grew 4% to $2.5 billion, with earnings per share at $1.69, but it lowered its full-year revenue and profit guidance. The company expects fiscal 2026 revenue to be between $11 billion and $11.15 billion, lower than the previous range of $11.35 billion to $11.5 billion; full-year EPS guidance was lowered from $12.10–$12.30 to $10.95–$11.15.

Chip stocks continued to weaken in pre-market trading. Micron ( MU) fell over 3%, AMD dropped more than 2%, Intel ( INTC) fell nearly 3%, NVIDIA ( NVDA) dropped approximately 1%, Broadcom ( AVGO) fell 1.5%. Earlier, Broadcom's earnings report failed to meet high market expectations for its AI chip business, triggering profit-taking in the semiconductor sector.

Mega-cap tech stocks showed divergent performance. Tesla ( TSLA) rose slightly in pre-market trading, Microsoft ( MSFT) edged higher, Alphabet ( GOOGL ), Palantir ( PLTR) and others saw slight weakness in pre-market trading.

Market Headlines

The May U.S. non-farm payrolls report is due tonight. Markets widely expect an addition of 80,000 to 85,000 jobs, lower than April's 115,000. The unemployment rate is forecast to hold steady at 4.3%, with average hourly earnings expected to grow 0.3% month-over-month and 3.4% year-over-year. Previously, ADP data showed private sector employment rose by 122,000 in May, beating estimates, though Thursday's initial jobless claims climbed to a four-month high of 225,000.

Nvidia CEO Jensen Huang arrived in South Korea for a visit. Following his Taiwan Computex itinerary, Huang arrived in South Korea on June 5 and met today with senior executives from Samsung Electronics, SK Hynix, Hyundai Motor, LG, and NAVER. The market is monitoring progress on Nvidia's Vera Rubin platform, the HBM4 supply chain, and collaborations in robotics and physical AI.

Market attention has turned to SpaceX IPO rules. S&P Dow Jones Indices decided against amending the S&P 500 fast-track inclusion rules, meaning SpaceX will be unable to join the index immediately post-IPO. Furthermore, reports indicated that SpaceX IPO materials were temporarily inaccessible in mainland China and Hong Kong, potentially restricting investor participation in those regions.

Middle East tensions and risks in the Strait of Hormuz continue to weigh on oil prices. Markets are continuing to assess U.S.-Iran peace negotiations, ceasefire arrangements between Israel and Lebanon, and the navigation outlook for the Strait of Hormuz.

Key Data/Events Preview

At 8:30 AM ET on June 5, the U.S. will release May nonfarm payrolls, the unemployment rate, average hourly earnings, and average weekly hours.

At 3:00 PM ET on June 5, the U.S. will release April consumer credit data.

After the market close on June 5 ET, the market will focus on CFTC positioning data as well as the performance of Treasury yields, the U.S. dollar, and gold following the nonfarm payrolls release.