US stock futures rise as chips rebound ahead of jobs data

U.S. stock index futures climbed on May 8 as semiconductor stocks led gains, easing earlier concerns about U.S.-Iran tensions in the Gulf. By 06:04 a.m. ET, Dow E-minis added 128 points (0.26%), while S&P 500 E-minis rose 33.25 points (0.45%) and Nasdaq 100 E-minis gained 180.5 points (0.63%), nearing record highs. Chipmakers drove the rally: Microchip Technology surged 3.9% after reporting first-quarter revenue above estimates, citing strong demand in industrial and automotive sectors, while Qualcomm jumped 4.8% and Nvidia rose 1%. The gains contrasted with broader market caution over geopolitical risks, as U.S. and Iranian forces clashed in the Gulf, threatening oil flows through the Strait of Hormuz. Oil prices topped $100 per barrel, raising inflation fears despite record-high S&P 500 and Nasdaq levels, supported by strong earnings and AI-driven tech optimism. Barclays strategist Emmanuel Cau warned that oil disruptions risked delaying market progress, while analysts noted semiconductor stocks may be overvalued without resolution in the Middle East. Investors also focused on the Labor Department’s 8:30 a.m. ET jobs report, with economists expecting 62,000 new nonfarm payrolls in April and an unchanged 4.3% unemployment rate. A strong report could push back Federal Reserve rate-cut expectations, as traders anticipate steady rates in the 3.50%–3.75% range through year-end. Derren Nathan of Hargreaves Lansdown cautioned that high inflation may delay cuts if hiring remains robust. Meanwhile, tech stocks faced setbacks: Cloudflare fell 17% after announcing a 20% workforce reduction and below-expected Q2 revenue, while Trade Desk dropped 15.8% on similar forecasts. CoreWeave declined 6.5% after raising its annual capital expenditure outlook due to rising component costs. The mixed performance highlighted investor uncertainty amid geopolitical risks and economic data.