US Open: Wall Street slides amid semiconductor stocks sell-off 📌Intel down 6%

Nasdaq 100 (US100) and S&P 500 (US500) futures are down 1.3% and 0.6%, respectively, while Dow Jones Industrial Average (US30) futures are showing greater resilience, slipping just 0.2%. Non-tech sectors are outperforming as investors rotate away from AI and semiconductor-related names.

Stronger-than-expected US labor market data, combined with continued weakness in the technology sector, is driving a broad sell-off across semiconductor stocks, including memory chip producers such as Micron and SanDisk. Nvidia shares are down more than 2%, while TSMC is losing nearly 3.5%, despite management reiterating expectations for sustained, multi-year AI-driven demand growth.

Semiconductor Sector Remains Under Pressure

Chipmakers continue to face selling pressure following Broadcom's earnings report. After Thursday’s sharp sell-off, the sector remains firmly in the red:

• Broadcom is down another 4% after plunging 12.5% in the previous session,

• AMD is losing nearly 5%,

• Intel is down almost 6%,

• Arm Holdings is falling around 7%.

Investors are becoming increasingly selective toward AI and semiconductor stocks after a powerful rally that pushed valuations to elevated levels across much of the sector.

Strong US Jobs Report Supports the Dollar

The US economy added 172,000 nonfarm payroll jobs in May, significantly above the 80,000 expected by economists surveyed by Dow Jones. Meanwhile, the unemployment rate remained unchanged at 4.3%, in line with market forecasts.

The stronger labor market data has boosted the US dollar and Treasury yields, while also raising concerns that the Federal Reserve may have less incentive to cut interest rates in the near future.

US500 (D1)

The US500 contract is currently on track to post its first weekly decline in ten weeks. Despite the weakness, the index is holding up better than the tech-heavy US100, although large-cap technology stocks continue to weigh on the benchmark due to their significant index weighting.

The area around the EMA50 (orange line) near 7,330 points appears to be the first major support zone in a bearish scenario. This level is further reinforced by previous price reactions and could become a key battleground between buyers and sellers if downside momentum continues.

Source: xStation5

Source: xStation5

US Equity Market News

Citi remains constructive on equities despite growing signs of market exuberance. Strategist Beata Manthey noted that global equity indices remain near record highs, valuations across several market segments appear stretched, investor sentiment is increasingly optimistic, and rising IPO and equity issuance activity reflects strong risk appetite. While these factors do not necessarily signal an imminent market top, they suggest that more indicators are moving into elevated-risk territory.

DocuSign disappoints with its revenue outlook. Shares are down around 4% after the company’s second-quarter guidance failed to impress investors. Management expects revenue between $865 million and $869 million, broadly in line with the LSEG consensus estimate of $866 million, but without any meaningful upside surprise.

Source: xStation5