Dow Futures Drop

Dow Futures Drop

At 08:55 am ET (1255 GMT), Dow futures were down 235 points or 0.7%. S&P 500 futures were down 0.95% to 4137, and Nasdaq 100 futures were down 1.5%. This comes off a major rally day on Thursday, with each major indices up more than 1.3%.

The big story to watch was the latest jobs report; the U.S. economy added 390,000 jobs, ahead of expectations for 325K jobs. The Fed is still locked on a plan for continued 50 basis point hikes; the market’s initial reaction has been to sell off as it braces for tighter monetary conditions.

Cuts in Tesla

Tesla’s CEO Elon Musk made big corporate-level news as reports from his internal email to Tesla executives calling for cuts of about 10% due to a ‘super bad’ feeling about the economy. Tesla (NASDAQ: TSLA) traded 4% lower in the pre-market session. Apple (NASDAQ: AAPL) also moved lower, down 1.9% in pre-market trading, amidst reports that app store growth could be a headwind for the current quarter. Memory semiconductor manufacturer Micron (NASDAQ: MU) was down 3.5% after receiving a downgrade from Piper Sandler.

Gainers in early trading included Okta (NASDAQ: OKTA), which traded up as much as 17% after a beat-across-the-board earnings report, and Lululemon (NASDAQ: LULU), which also had a strong earnings report.