US Open: weaker labor market and AI weigh on Wall Street ❗

Following the opening of Thursday’s session on Wall Street, sentiment remains cautious and mixed. Investors are trying to determine whether Wednesday’s 0.7% decline in the US500, which ended a nine-session winning streak, was merely profit-taking or the beginning of a deeper correction. Today's session is being shaped primarily by softer labor market data, pressure on AI and semiconductor stocks, and persistent geopolitical risks.

Macro Data: Labor Market Showing Signs of Softening

The latest jobless claims report painted a slightly weaker picture of the U.S. labor market.

• Initial Jobless Claims rose by 13k to 225k, versus expectations for a decline toward 212–213k.
• This marks the highest reading since early February and signals a gradual cooling of labor market conditions.
• Continuing Claims came in at 1.777 million, slightly below the previous week's reading.

The data may support the narrative of a softer labor market, but they are not yet weak enough to decisively shift Fed expectations toward rapid monetary easing. At the same time, elevated oil prices continue to pose inflation risks.

Nasdaq 100: Rotation Beneath the Surface

Following the opening bell, the Nasdaq 100 is displaying clear selectivity. The largest megacap stocks remain relatively stable, while pressure is concentrated in AI-related and semiconductor names.

• Broadcom falls 14.37%, making it the largest negative contributor to the index.

• Other notable decliners include:

  • CrowdStrike -9.97%
  • Micron -7.23%
  • ARM -6.94%
  • Marvell -5.88%
  • AMD -5.36%
  • Lam Research -3.99%

At the same time, several of the largest companies remain in positive territory:

• Nvidia +0.18%
• Apple +0.40%
• Microsoft +0.88%
• Alphabet +1.13%
• Meta +2.22%

A market-cap-weighted treemap shows that this is not a broad selloff across the technology sector. Pressure is focused primarily on the most crowded AI and semiconductor trades, while the largest megacaps are helping stabilize the index.

Biggest Winners and Losers

On the upside, investors are favoring more defensive names or companies with less direct exposure to the AI theme.

Top Gainers in the Nasdaq 100

• Vertex Pharmaceuticals +3.07%
• Thomson Reuters +2.93%
• Automatic Data Processing +2.59%
• Copart +2.47%
• Booking Holdings +2.47%
• Meta Platforms +2.22%
• MercadoLibre +2.22%

On the downside, technology stocks clearly dominate the list of losers, particularly semiconductor and AI-related companies. Many of these firms still maintain very strong 12-month returns, making today's move appear more like aggressive profit-taking and a reassessment of expectations rather than a full trend reversal.

Stocks in Focus

• Broadcom is the session's primary negative catalyst. Despite reporting record revenue, its AI chip sales outlook was viewed as too conservative relative to the market's exceptionally high expectations.

• CrowdStrike is down nearly 10%. Although the company raised its full-year guidance, investors remain focused on rising operating costs associated with AI infrastructure.

• Micron, ARM, Marvell, AMD, and Lam Research are also under pressure, signaling a broader correction within the AI and semiconductor space following substantial gains earlier this year.

• PVH Corp. is falling after cutting its full-year outlook. The company cited geopolitical tensions and the Iran conflict as factors negatively affecting supply chains.

• Lululemon is scheduled to report earnings after the market close. Options markets imply a move of approximately 9.4%, suggesting elevated volatility expectations.

• MicroStrategy and Coinbase remain under pressure alongside Bitcoin’s decline toward the $62,500–64,000 range.

SpaceX IPO Draws Investor Attention

The primary market remains focused on reports surrounding a potential SpaceX IPO. According to market sources, Elon Musk's company is expected to set an offering price of $135 per share. The deal could raise between $74.4 billion and $75 billion, implying a total company valuation of approximately $1.75–1.77 trillion.