AI Stocks Wobble as Market Eyes Jobs Data

US stock futures showed mixed trading on July 2, 2026, with Nasdaq and S&P 500 futures experiencing declines. This downturn was fueled by mounting concerns that the rapid rally in artificial intelligence (AI)-linked stocks had potentially outpaced their valuations. Technology stocks, particularly semiconductors, led the slide.

In Asia, major semiconductor companies such as SK Hynix and Samsung Electronics saw their shares plunge over 8%. Similarly, Kioxia Holdings Corp in Japan experienced a significant 14% drop. This followed a broader retreat on Wall Street, where major indices closed lower after an earlier attempt to reach record highs.

Investors are actively reassessing the valuations and long-term sustainability of AI-driven gains. This reassessment comes after a period of aggressive investment in chip and memory stocks, some of which had seen gains as high as 300% in the first half of 2026.

Market sentiment was also influenced by statements from Federal Reserve Chair Kevin Warsh and other central bankers. Their comments indicated a more balanced inflation outlook, suggesting the Fed might not be in a hurry to raise interest rates. Attention now focuses on the US nonfarm payrolls report due later on July 2, 2026.

This employment data is expected to provide further insight into the Federal Reserve's policy path. A strong report could signal economic resilience, while a weaker one might reduce expectations for tighter monetary policy, potentially benefiting growth stocks that have recently struggled.

Meanwhile, global oil markets are bracing for potential shifts. Increased production from Middle East oil producers and higher Iranian oil exports are contributing to expectations of global supply outpacing demand. Brent crude futures concluded the second quarter of 2026 with a substantial 40% decline, marking their worst quarterly performance since 2020.