In a notable downturn during premarket activity, the broad market exchange-traded fund, SPDR S&P 500 ETF Trust (SPY), experienced a decline of nearly 1.5%. Similarly, the actively traded Invesco QQQ Trust (QQQ) saw a drop of 2.2%. This bearish trend comes as technology stocks, including industry giants like Intel (INTC) and Procore Technologies (PCOR), reported weaker-than-expected outlooks.
In addition, the labor market data showed an uptick in the July jobless rate, which further dampened investor sentiment. As we delve deeper into the futures market, US stock futures also exhibited a downward trajectory. The S&P 500 Index futures fell by 1.1%, while the Dow Jones Industrial Average futures decreased by 0.8%.
The Nasdaq futures followed suit, declining by 1.7% prior to the commencement of regular trading hours. The economic calendar highlights significant releases, with the June factory orders report expected at 10 am ET, alongside the Baker Hughes domestic oil-and-gas rig count report slated for 1 pm ET.
These indicators will certainly be keenly observed by market participants for further insights into the state of the economy. Regarding employment figures, the July nonfarm payrolls increased by 114,000, falling short of the anticipated increase of 175,000, as indicated by a survey conducted by Bloomberg at 7:25 am ET.
The private payrolls also showcased a modest increase of 97,000, down from a higher gain of 136,000 the previous month and below the forecasted rise of 140,000. Additionally, the unemployment rate revealed an increase to 4.3% from a prior 4.1%, contrasting with expectations of it holding steady at 4.1%. In exciting developments within the cryptocurrency sphere, Bitcoin saw a jump of 2%, while the ProShares Bitcoin Strategy ETF (BITO) enjoyed a 2.3% increase in premarket trading. Further illuminating the technology sector's performance, the Technology Select Sector SPDR Fund (XLK) fell by 2.7%, while the iShares US Technology ETF (IYW) lost 3.1%.
The iShares Expanded Tech Sector ETF (IGM) dipped by 1.2%. Within the semiconductor industry, the SPDR S&P Semiconductor ETF (XSD) recorded a significant drop of 3.9%, with the iShares Semiconductor ETF (SOXX) also down by 3.7%. Notably, Intel (INTC) faced a staggering 24% decline following the release of its fiscal Q2 results, which reported lower non-GAAP diluted earnings and net revenue compared to the previous year. In the health care sector, the Health Care Select Sector SPDR Fund (XLV) slipped 0.1%, while the Vanguard Health Care Index Fund (VHT) remained unchanged.
The iShares US Healthcare ETF (IYH) fell by 0.9%, and the iShares Biotechnology ETF (IBB) dropped by 1.9%. Among the notable shifts, Bausch Health (BHC) saw its shares plummet over 11% after Piper Sandler downgraded the stock from neutral to underweight, revising its price target down from $9 to $3. Turning to consumer stocks, the Consumer Staples Select Sector SPDR Fund (XLP) rose by 0.4%, whereas the Vanguard Consumer Staples Fund (VDC) remained flat.
The iShares US Consumer Staples ETF (IYK) fell by 1.2%, and the Consumer Discretionary Select Sector SPDR Fund (XLY) faced a significant decline of 3.8%. The VanEck Retail ETF (RTH) showed no movement, while the SPDR S&P Retail ETF (XRT) dropped by 3.5%. On a more positive note, DoorDash (DASH) saw stock prices rise by over 8% in premarket trading after revealing a narrower net loss for Q2 and increased revenues compared to the previous year. The financial sector saw mixed results, with the Financial Select Sector SPDR Fund (XLF) losing 1.1%.
Meanwhile, Direxion Daily Financial Bull 3X Shares (FAS.US) dropped 3.6%, whereas its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), gained 4.1%. Block’s (SQ) shares declined by 1.8% during premarket trading after reporting lower-than-expected total net revenues for Q2. In the industrial sector, the Industrial Select Sector SPDR Fund (XLI) decreased by 1.5%.
The Vanguard Industrials Index Fund (VIS) fell slightly by 0.1%, while the iShares US Industrials ETF (IYJ) remained unchanged. Fluor (FLR) stocks were also down, declining by 1% following their below-expected Q2 revenue report. In terms of energy, the iShares US Energy ETF (IYE) exhibited little volatility, while the Energy Select Sector SPDR Fund (XLE) fell marginally by 1.4%.
Coterra Energy (CTRA) shares dipped by 0.4% in premarket trading after reporting lower adjusted Q2 earnings from the previous year. In commodities, the front-month US West Texas Intermediate crude oil experienced a slight loss of 1%, settling at $75.55 per barrel at the New York Mercantile Exchange.
Natural gas rose by 1.8%, priced at $2 per 1 million British Thermal Units. The United States Oil Fund (USO) fell by 1.6%, while the United States Natural Gas Fund (UNG) recorded a 1.5% increase. In the precious metals market, gold futures for December rose by 0.9%, reaching $2,502.60 per ounce on the Comex, while silver futures increased by 1.9%, hitting $29.03 per ounce.
Notably, SPDR Gold Shares (GLD) also advanced by 0.6%, and iShares Silver Trust (SLV) increased by 1.3%. These movements reflect the ongoing volatility in both the equity and commodities markets, leaving investors cautiously observing for incoming data and further economic indicators..