US stock futures rise as chip stocks rebound, jobs eyed

Early moves in US index futures

U.S. stock index futures traded higher on Friday as chipmakers recovered from the previous session’s weakness, helping markets look past renewed worries around U.S.-Iran tensions. The focus was also on the Labor Department’s closely watched employment report due at 8:30 a.m. ET.

By 06:56 a.m. ET, Dow E-minis were up 119 points, or 0.24%. S&P 500 E-minis added 30 points, or 0.41%. Nasdaq 100 E-minis rose 166.5 points, or 0.58%, with the tech-heavy contract trading near record highs.

The move came after U.S. stocks closed lower in the previous session, when investors paused on semiconductor stocks that have rallied sharply this year on the back of spending tied to artificial-intelligence infrastructure.

Chip rebound steadies sentiment

Semiconductor shares were a key support in premarket trading. Microchip Technology rose 3.1% after forecasting first-quarter revenue above estimates, citing strong demand for chips used in industrial and automotive applications. Qualcomm jumped 4.8%, and Nvidia was up 0.8%.

The chip rebound mattered because the sector has been a major driver of broader index gains through the year, as investors positioned for higher spending on AI-related servers, networking gear, and data-center capacity. The prior session’s pullback was framed as a pause after a sharp run-up, rather than a shift in the narrative around AI demand.

Geopolitics and oil-linked inflation concerns

Alongside tech, investors were monitoring news around renewed U.S.-Iran tensions. The same backdrop kept attention on oil prices and the inflation risk they can create when fuel costs rise.

Even with those concerns, the S&P 500 and Nasdaq have touched record highs in recent trading. Support has come from a strong earnings season, signs of a resilient U.S. economy, and continued optimism around the outlook for technology and AI companies.

The jobs report as the day’s main catalyst

Markets were preparing for the April employment report, which is typically a major driver for both equity index futures and rate expectations. According to a Reuters poll of economists, nonfarm payrolls were expected to rise by 62,000 jobs last month, following a rebound of 178,000 in March.

The unemployment rate was seen holding steady at 4.3%. That combination would point to a labor market that remains stable, in line with recent economic readings. For investors, the employment report also shapes expectations on the path of interest rates, because labor-market tightness can influence wage growth and inflation.

Other economic signals in focus

Ahead of the payrolls release, traders also had fresh labor-market and activity indicators to weigh. A Labor Department report on Thursday showed initial jobless claims unexpectedly fell by 9,000 to 198,000, a six-week low, versus expectations for 215,000.

In manufacturing data, the Philly Fed manufacturing index rose to a four-month high of 12.6 in January, above expectations of -1.6. The January Empire State manufacturing index rose to 7.70, also stronger than expectations of 0.80. The U.S. import price index unexpectedly increased 0.4% month-on-month in November, versus expectations for a 0.1% decline.

Chicago Fed President Austan Goolsbee said the central bank’s primary focus should be curbing inflation, as the labor market shows signs of stabilizing.

Global data points and policy signals

Outside the U.S., final data confirmed on Friday that Germany’s annual inflation rate eased to 1.8% in December, while Italian annual inflation ticked up slightly to 1.2%. Germany’s December CPI was unchanged month-on-month and up 1.8% year-on-year, in line with expectations.

In China, the People’s Bank of China announced cuts to certain sector-specific interest rates to give the economy an early boost, and signaled it has room to cut interest rates and banks’ reserve requirements.

Key numbers at a glance

Market impact

The premarket gains reflected a familiar pattern in recent months: chip stocks stabilizing after a pullback can lift broader sentiment because of the sector’s heavy weight in the Nasdaq 100 and influence on the S&P 500. The move higher in futures also suggested investors were willing to keep risk exposure ahead of a single major macro catalyst, rather than wait for confirmation.

At the same time, the mention of U.S.-Iran tensions and the link between oil prices and inflation highlighted a competing risk for equities. Higher energy prices can keep inflation pressures elevated, which in turn can affect expectations for monetary policy. With futures near record highs, the day’s jobs report carried extra significance as a test of whether the economy is slowing smoothly or showing renewed strength.

Why the combination of chips and payrolls matters

Chipmakers have benefited from expectations of sustained AI infrastructure spending, but the rally also means the group can be sensitive to shifts in rates and growth assumptions. A weaker-than-expected jobs report can revive hopes that inflation will cool further, while a stronger reading can reinforce the view that inflation risks remain and interest rates may stay higher for longer.

That is why Friday’s market setup had two clear inputs: sector-specific momentum in semiconductors, and a macro data release with the potential to reset expectations across equities, bonds, and the U.S. dollar.

What to watch next

Investors were set to react to the 8:30 a.m. ET employment report, including nonfarm payrolls and the unemployment rate. Attention was also likely to remain on chipmakers after premarket strength in names such as Microchip Technology, Qualcomm, and Nvidia.

Further moves in oil prices and developments tied to U.S.-Iran tensions were also potential drivers for sentiment through the session, particularly because of their connection to inflation expectations.