Nasdaq futures traded about 0.3 percent lower early Monday, extending last week's heavy tech losses as a stronger-than-forecast US jobs report collided with fresh geopolitical tension in the Middle East. S&P 500 futures slipped around 0.2 percent and Dow futures fell by a similar margin, reflecting broad caution after one of the ugliest sessions for growth stocks in more than a year.
Friday's selloff was sparked by a surprisingly strong May nonfarm payrolls report, which showed the US economy added about 172,000 jobs, comfortably beating consensus estimates. Good economic news quickly turned into bad news for markets, as traders concluded the Federal Reserve may need to keep interest rates higher for longer to cool demand.
The Nasdaq Composite plunged around 4.2 percent on Friday, marking its worst one-day decline since April 2025 and underscoring how crowded the tech trade had become. The S&P 500 shed roughly 2.6 percent, while the Dow Jones Industrial Average dropped about 695 points. For the week, the tech-heavy Nasdaq fell close to 4.7 percent, reminding traders that dominant growth names remain vulnerable when the rate curve moves against them.
The damage was not confined to US equities. Across Asia, stocks tracked Wall Street lower, with South Korea's Kospi briefly down more than 8 percent before paring losses to around 4 percent. Gold prices slumped by nearly $150 an ounce, while Bitcoin slipped below $60,000, signaling a broad de-risking rather than a simple rotation between sectors.
Attention now turns to the US Consumer Price Index on Wednesday and Producer Price Index on Thursday. Any upside surprise could harden the case for keeping rates elevated or even revive discussion of further tightening. At the same time, SpaceX's expected market debut on Friday is set to test investor appetite for high-valuation, high-story stocks in the current environment.
Trading Insight
From a trading perspective, the backdrop argues for disciplined risk management and a more selective stance in high-beta tech. Short-term players may look for tactical bounces in oversold Nasdaq names, but aggressive dip-buying ahead of CPI and PPI carries elevated event risk if inflation data reinforces the higher-for-longer rate narrative. A benign inflation print could trigger a sharp relief rally in rate-sensitive growth pockets, but the move may be fast and positioning-driven rather than a firm reset of the medium-term rate outlook.
Key Levels
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