Futures tied to major US equity indices retreated from record highs as investors reacted to a more hawkish Federal Reserve outlook and a continued standoff between Iran and the US. S&P 500 and Nasdaq 100 futures edged lower, while Dow futures dropped more than 200 points. Fresh ADP data showed the private sector added a net 122,000 jobs in May, beating expectations, reinforcing the picture of a resilient labor market, and giving the Fed greater scope to raise interest rates to combat inflation.
Shares in traditional cyclical sectors declined, with bank stocks trading lower in premarket activity. Even so, optimism around artificial intelligence and robust demand for AI infrastructure continued to underpin technology names, driving another session of relative outperformance for the Nasdaq. Marvell Technology jumped 15% in premarket trading, extending its 30% gain from the previous session after Nvidia CEO Jensen Huang said the chipmaker could become the next trillion-dollar company. Macy’s gained about 3% premarket after posting stronger-than-expected earnings and raising its guidance.
