Traders work at the New York Stock Exchange on June 26, 2026.

NYSE

U.S. stock futures erased early gains to tip into negative territory on Thursday, as investors awaited key employment data that could influence the Federal Reserve’s decision-making on monetary policy.

Dow Jones Industrial Average futures pared earlier gains to lose 35 points, less than 0.1%. S&P 500 futures fell by about 0.08%, while Nasdaq-100 futures were 0.3% lower.

The moves come after the major U.S. averages ended Wednesday’s session lower, with the Dow erasing a 423.46-point jump ­that brought it to record highs to close just below the flatline. The S&P 500 and Nasdaq Composite slid 0.2% and 0.7%, respectively, as investors pared positions in chipmakers.

The VanEck Semiconductor ETF (SMH) lost 5.4%, with Micron Technology and Sandisk dropping more than 10% each.

South Korea’s Kospi led losses in Asia, falling 7.89% to close at 7,648.09. The small-cap Kosdaq dropped 6.74% to 866.72. Index heavyweights Samsung and SK Hynix were down over 8% and more than 12%, respectively.

Japan’s Nikkei 225 declined 2.47% to 68,733.15, while the Topix inched up 0.1% to 4,014.98. Australia’s benchmark S&P/ASX 200 was flat at 8,724.50. Hong Kong’s Hang Seng Index rose 0.61%, while the CSI 300 was down more than 2%.

While the decline in the chip sector weighed on the broader market, Ned Davis Research strategist Rob Anderson thinks the rotation out of semiconductors is healthy.

“One of the characteristics of the bull market has been rotation. The attribute has been on full display in 2026,” he wrote. “A passing of the baton to a non-commodity cyclical sector would be further evidence that the stock market is entering the second half of the year in a position of strength and that the bull market can continue deep into the second half of the year.”

Wall Street is looking ahead to the June jobs report, scheduled for release at 8:30 a.m. ET. Economists polled by Dow Jones expect the economy added 115,000 jobs last month.