Tech Lifts Futures 1.1%-But Friday's Jobs Report Is the Real Test

Tech earnings are lifting futures, but Friday's jobs data sets the next test

Nasdaq 100 futures are up 1.1%, but the rally now comes with a macro deadline: Friday's jobs report. The key question is whether payrolls hold up around the 100K expectation for July. If the data comes in notably weaker, Monday's green tone may not last.

Last week created the setup. The S&P 500 and the Nasdaq rallied to record highs, while the benchmark index also closed at a record level. But breadth remained narrow: even in that strong stretch, most S&P 500 sectors were down on the day. Earnings reinforced expectations of more AI spending, but the rally was still concentrated rather than broad-based.

That makes this look more like a momentum trade than a fully confirmed new leg higher. If payrolls hold up, leadership in AI-related stocks can keep pushing the market. If not, weak breadth after record highs could become a problem quickly.

AI hardware is doing most of the work

The bid into Monday is still coming through a narrow lane: AI hardware. After last week's record-high stretch, futures are again leaning on the same story that signs of sustained artificial intelligence demand helped lift the technology sector. In other words, the market is still responding to supplier data and earnings power in one part of the tape rather than waiting for broad cyclical confirmation.

How the trade is reactivating

Foxconn's stronger-than-expected quarterly sales gave traders fresh evidence that AI infrastructure spending is still moving. That helped ease the pressure on chip stocks after a late-June slump, during which Micron lost 19%.

Once that narrative restarted, the stock reactions were sharp. Nvidia climbed 1.8%, while Micron and Sandisk each rallied about 12%. The Philadelphia Semiconductor index also jumped almost 5% last week. The takeaway is straightforward: strong supplier signals are reviving the AI hardware trade, and those heavyweight names can still lift the broader growth complex even while breadth remains limited.