U.S. stock index futures fell further Thursday after the release of weak labor market data, while investors awaited the start of the Federal Reserve’s Jackson Hole symposium for clues over future interest rates movements.
At 08:45 ET (12:45 GMT), Dow Jones Futures dropped 200 points, or 0.5%, S&P 500 Futures slipped 27 points, or 0.4%, and Nasdaq 100 Futures fell 105 points, or 0.5%.
The major indices closed in a mixed fashion Wednesday, with the Dow Jones Industrial Average eking out a small gain while the S&P 500 and the NASDAQ Composite closed lower. This meant a four-day losing streak for the broad-based S&P 500 as tech names saw another day of outsized selling.
Apple (NASDAQ:AAPL) was the worst performer with a near 2% drop, while Nvidia (NASDAQ:NVDA) fell the least after steep losses earlier this week.
Tech shares were hit chiefly by growing doubts over the profitability of artificial intelligence, especially following a highly critical report released from a branch of the Massachusetts Institute of Technology.
The report said 95% of organizations were seeing “zero return” on their AI investments, raising doubts over the hype around AI, which has been a key drive of Wall Street and tech stocks this year. 
The report comes just a week before quarterly earnings from AI bellwether Nvidia, which will be closely watched for more cues on the fast-growing industry. 
Jobless claims rise more than expected 
The number of Americans filing for first-time unemployment benefits rose more than expected last week, pointing to a further weakening of the country’s labor market amid tariff-fueled economic uncertainty.
Seasonally-adjusted U.S. jobless claims climbed to 235,000 in the week ended on August 16, up from 224,000 in the prior week. Economists had predicted a reading of 226,000.
This release has added to recent evidence of a cooling labor market as companies grapple with uncertainty around Trump’s tariff policies.
The July jobs report, released at the start of this month, showed far fewer jobs than expected were created in that month, a rise in the unemployment rate and a drop in the labor force participation rate to the lowest level since late 2022.
Wall Street indexes had been spooked on Wednesday by somewhat hawkish signals from the minutes of the Fed’s July meeting.
The minutes showed a bulk of Fed members largely supported the central bank’s wait-and-see approach to cutting interest rates, amid caution over the inflationary impact of President Donald Trump’s trade tariffs. 
The central bank was also seen prioritizing inflation risks over fears of a decline in the U.S. labor market, which could elicit another hold in September.
Fed Chair Jerome Powell is set to speak at the Jackson Hole Symposium on Friday, offering up more cues on policy. 
Walmart reports quarterly results 
On the corporate front, Walmart (NYSE:WMT) is in the spotlight after the worlds largest retailer by sales reported mixed second-quarter results, with revenue exceeding expectations but earnings falling short of analyst estimates.
The retail giant also raised its full-year sales and earnings outlook, signaling confidence in its growth trajectory despite near-term challenges.
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Walmart’s low-price model and dominance in grocery can help it weather economic storms better than others, and it has surpassed earnings estimates for 11 consecutive quarters, according to LSEG data, sending its valuation soaring even as other consumer staples companies have struggled this year.  
The week has seen a number of big-box retailers reporting. Home Depot (NYSE:HD) started the ball rolling on Tuesday, while Target (NYSE:TGT) tumbled on Wednesday after the company named insider Michael Fiddelke as CEO and retained annual forecasts that were lowered in May.
Crude prices rises 
Oil prices rose Thursday, adding to recent gains and buoyed by signs of resilient demand in the U.S., the world’s largest consumer of energy.
At 08:45 ET, Brent futures gained 0.3% to $67.05 a barrel, and U.S. West Texas Intermediate crude futures rose 0.4% to $62.94 a barrel.
Both contracts climbed over 1% in the prior session.
U.S. crude inventories fell by 6 million barrels last week, the U.S. Energy Information Administration said on Wednesday, while gasoline stocks dropped by 2.7 million barrels, both more than expected.
This indicated steady driving demand during the peak summer travel season, helping offset some concerns about global economic uncertainty.