Wall Street futures trade mixed today: 5 things to know before Wall Street opens

• Western Digital reported 44% revenue growth to $3.75 billion and SanDisk's revenue surged to $8.97 billion, yet both stocks fell sharply as forward guidance failed to justify valuations after a 400% rally in 2026
• The semiconductor sell-off spread globally, with Samsung and SK Hynix falling in Seoul while Nvidia, Micron, and AMD declined over 1% pre-market, concentrated in AI infrastructure hardware stocks
• Oil prices, Federal Reserve policy uncertainty, and weak July private payrolls (only 44,000 jobs added) are adding macro headwinds ahead of Friday's critical nonfarm payrolls report

Market Summary: Wall Street Futures Mixed as AI Rally Faces Valuation Test

Market Overview:

U.S. stock futures traded mixed Thursday, with Dow futures up 123 points (+0.3%), S&P 500 flat, and Nasdaq 100 down 133 points (-0.5%). The divergence reflects a rotation from high-valuation AI stocks toward industrial and defensive names with visible cash flows.

Key Developments:

*Western Digital & SanDisk Earnings Miss Expectations Despite Strong Growth*

Both companies reported substantial revenue growth—Western Digital up 44% to $3.75 billion with adjusted earnings of $3.56, while SanDisk posted $8.97 billion in revenue and $6.9 billion net income. However, forward guidance disappointed investors. Western Digital's stock plunged despite rising ~400% in 2026, demonstrating that strong results alone no longer satisfy elevated AI-related valuations.

*Chip Sector Weakness Spreads*

The semiconductor complex suffered broader declines, with AMD, Marvell Technology, and Intel each falling over 1%. Samsung Electronics and SK Hynix dropped in Seoul, indicating global pressure on memory and storage stocks—key proxies for AI infrastructure demand.

Additional Market Factors:

• SpaceX Lock-up Expiry: 912 million shares became eligible for sale, creating potential volatility despite modest pre-market gains
• Macro Concerns: Oil prices fell amid an emerging Iran-Oman framework, though Gulf exports remain 40% below pre-war levels
• Jobs Data Watch: July private payrolls rose just 44,000, intensifying focus on Thursday's jobless claims and Friday's nonfarm payrolls ahead of the Fed's September decision

Market Implication:

Investors are becoming more selective, rotating away from extended AI hardware plays while maintaining overall positive sentiment toward companies demonstrating sustainable cash generation.