05.06.202612:48:43UTC+00US Futures Edge Lower after NFP

US equity futures edged lower on Friday after a strong jobs report reinforced expectations for persistently tight monetary policy, while chipmakers extended their selloff. Futures on the S&P 500 and Nasdaq 100 slipped 0.5% and 1.3%, respectively, while Dow Jones contracts hovered near the flatline at record levels.

The US economy added a net 172,000 jobs in May, comfortably beating forecasts. The data prompted markets to ramp up bets on an additional Federal Reserve rate hike this year, with the resilience of the labor market giving policymakers more scope to combat inflation risks. Those concerns are being amplified by elevated energy prices, underpinned by ongoing tensions between Iran and the US.

Banks and defensive shares trimmed premarket gains but remained in positive territory, helping support the Dow. Visa and Johnson & Johnson each rose by less than 1%. In contrast, semiconductor stocks came under renewed pressure: Broadcom fell 2%, extending a 13% plunge in the previous session after its guidance came in below expectations, while Micron slid 4% and Nvidia dropped 2%.

Meanwhile, S&P Dow Jones Indices rejected a proposal for the fast-track inclusion of SpaceX into its benchmarks ahead of the company’s IPO next week, which is expected to be the largest in history.