Stock market today: Dow, S&P 500, Nasdaq futures pull back after AI rally regains its mojo

US stock futures fell on Wednesday as investors took stock of another record-setting day on Wall Street for the Dow and more sharp gains for the Nasdaq.

Futures on the Dow Jones Industrial Average (YM=F) and on the S&P 500 (ES=F) both slid 0.4%. Contracts on the tech-heavy Nasdaq 100 (NQ=F) backed off 0.6%.

Stocks rose on Friday, lifting the The Dow Jones Industrial Average (^DJI) to a new record and the S&P 500 (^GSPC) to its best quarter since 2020. Meanwhile, the Nasdaq Composite (^IXIC) jumped as chip stocks continued to climb.

The upbeat mood came as key headwinds for markets appear to be easing. Oil prices are moderating, and the US and Iran are continuing to attempt talks on a long-term peace deal. The AI trade — especially in chip stocks — have driven a remarkable rally in tech. The job market has proven to be surprisingly resilient.

Investors will receive fresh insight into the labor market with the release of the June jobs report on Thursday, capping the holiday-shortened week. The data will provide clues about the Federal Reserve’s next move, including whether a rate hike later this year remains on the table.