US equity markets painted a split picture on Thursday as Dow futures added 0.3% while Nasdaq 100 futures slid 0.3%, intensifying a rotation away from large-cap tech names. The selling was concentrated in semiconductor and software stocks after a flurry of earnings reports disappointed: AMD dropped 7.04%, Western Digital sank more than 18%, and AppLovin plunged about 18% on missed revenue expectations. Nvidia bucked the trend, rising over 3% on news that SpaceX will use its chips exclusively, but broader tech weakness highlighted investor unease over AI spending levels and lofty valuations.
The risk-off tilt in high-growth equities is being closely watched by crypto traders, as digital assets have historically shown sensitivity to shifts in risk appetite. Meanwhile, a temporary Iran-Oman deal to reopen the Strait of Hormuz steadied oil prices near $80 per barrel, easing some inflation fears, while jobless claims came in at 199,000—below expectations. Federal Reserve rate expectations are finely balanced, with CME FedWatch showing nearly even odds between a hike and a hold at the September meeting. Friday’s nonfarm payrolls report is now seen as a critical catalyst that could redirect both traditional and crypto markets, with any signs of labor market tightness potentially strengthening the case for higher rates and pressuring risk assets.
