Labor Market Data Takes Center Stage 02/07/2026

 HOT stories for today

Market wrap:

• U.S. stock futures were little changed Thursday after the major indexes ended the previous session lower, as investors rotated out of semiconductor stocks following a powerful first-half rally. The Dow Jones Industrial Average briefly climbed more than 420 points to a fresh record yesetrday intraday high before giving back its gains to finish nearly unchanged. The S&P 500 slipped 0.2%, while the Nasdaq Composite lost 0.7%, pressured by weakness across the chip sector. The VanEck Semiconductor ETF (SMH) fell 5.4%, with Micron Technology and Sandisk dropping more than 10% each. Despite the sharp pullback, some strategists view the move as a healthy rotation rather than the start of a broader market reversal. 
• Oil prices also moved lower as signs of progress in U.S.-Iran negotiations eased concerns over potential supply disruptions in the Middle East. Brent crude fell 1.0% to $70.85 a barrel, while U.S. West Texas Intermediate declined 1.1% to $67.83. Brent is on track for its weakest quarter since 2020. On the macro front, investors continue to digest comments from Federal Reserve Chair Kevin Warsh, who reiterated that inflation remains "too high" while offering no signal on the timing of the next interest-rate decision. Attention now turns to Thursday's June nonfarm payrolls report, with economists expecting the U.S. economy to have added 115,000 jobs last month. The data could provide fresh insight into the labor market and shape expectations for Federal Reserve policy. Thursday also marks the final trading session of the week, with U.S. markets set to close on Friday in observance of the Independence Day holiday.

Chipmakers Powered First-Half Market Rally

• A narrow group of technology stocks powered nearly all of the Nasdaq-100’s gains in the first half of 2026, highlighting the market’s continued dependence on chip and AI-related names. The Nasdaq-100 climbed roughly 20% during the first six months of the year, with Micron Technology alone accounting for more than a quarter of the index’s return, according to Jefferies. The memory-chip maker’s shares quadrupled in the first half, lifting its market capitalization to about $1.3 trillion. Other major contributors included Advanced Micro Devices and Intel, which were responsible for 16% and 14% of the Nasdaq-100’s gains, respectively.
• Chip-equipment names such as Applied Materials, Lam Research and KLA also played a major role, adding to the sector’s dominance. The concentration was also visible in the broader market. In the S&P 500, just 10 stocks accounted for 78% of the index’s nearly 10% first-half gain, with Micron again the largest contributor. Alphabet, Nvidia and Apple were also among the top drivers. As the second half begins, investors are watching for signs of rotation. Some of the year’s biggest semiconductor winners have started to pull back, while beaten-down software names such as ServiceNow, Salesforce and Intuit are showing signs of a rebound.

Stocks on the move:

• Meta Platforms (META): Shares surged 11% after reports that Meta is building a new cloud business, with plans to sell excess artificial intelligence computing power to outside customers.
• General Mills (GIS): Shares jumped more than 6% after the food maker posted better-than-expected fiscal fourth-quarter results and announced plans to generate $3 billion in cumulative cost savings through fiscal 2030.
• Progress Software (PRGS): Shares rallied more than 18% after the company reported second-quarter earnings and revenue that topped expectations, while third-quarter earnings guidance also came in above estimates.
• Datadog (DDOG): Shares gained more than 2% after the cloud software company disclosed its acquisition of Adaptive ML, an AI startup focused on deploying specialized agents.

Watchlist: META, DDOG, SNDK, MU, AMAT, TSLA, MSFT, MSTR, NKE

Key Economic Events Today:

EST time

07:45 am: USD FOMC Member Daly speaks
08:30 am: USD Non -Farm Employment Change
08:30 am: USD Unemployment rate and claims
10:00 am: USD Factory Orders



Earnings


BMO (Before Market Open): Lindsay Corporation (LNN)


The TEFS Analyst team wishes you a successful day!