US Markets

Nasdaq futures fall, dragged lower by Tesla, Alphabet and Amazon

Wall Street awaits employment data and eyes Korea tension
Wall Street awaits employment data and eyes Korea tension

U.S. stock index futures pointed to a lower open on Thursday, led by a fall in technology stocks, as traders awaited a fresh batch of economic data.

Nasdaq 100 futures dropped 58.50 points, or more than 1 percent, with Facebook, Amazon, Apple, Netflix and Alphabet all trading lower before the bell.

Shares of Tesla also fell in the premarket as a new set of crash tests raised questions about the safety of the company's Model S. The stock has fallen more than 10 percent this week and is down 17 percent from its June all-time high.

Meanwhile, Dow futures and S&P futures dropped 70 points and 9.75 points, respectively.

Yields rose around the world, adding further pressure to the equities market. The benchmark 10-year note yield rose to trade at 2.38 percent, while in the German 10-year bund yield broke above 0.5 percent for the first time since January 2016.

"Near term, higher yields could pose a further challenge to Tech shares which will require superior earnings reports to halt the slide – the "Summer Squall" for Tech and the "Summer Stall" for the broad market could continue through July," Julian Emanuel, UBS equity and derivatives strategist, said in a note Wednesday.

On the data front, a report from ADP and Moody's Analytics showed the U.S. economy added 158,000 jobs last month, less than the expected 185,000. The report usually serves as a warm-up act for the Bureau of Labor Statistics' monthly employment report, which is set for release Friday.

Later on Thursday morning, trade balance data for May and ISM manufacturing index for June are both scheduled before or at 10 a.m.

There are also three Federal Reserve speakers Thursday. They include San Francisco Fed President John Williams; Fed Gov. Jerome Powell speaks at 10 a.m. at the American Enterprise Institute, and Vice Chairman Stanley Fischer speaks at a 7:30 p.m. event at the Martha's Vineyard Hebrew Center Summer Institute on Government Policy and Labor Productivity.

In Europe, the pan-European Stoxx-600 index was around 1.1 percent lower on Thursday. In Asia, the Shanghai Composite in China closed 0.17 percent higher, while the Nikkei in Japan closed 0.44 percent lower.

In oil markets, Brent crude traded at around $48.49 a barrel on Thursday, up 1.5 percent, while U.S. crude was around $45.82 a barrel, up 1.5 percent.

Oil prices rebounded on Thursday to regain some ground from the previous session, though analysts warned oversupply concerns would continue to weigh on markets.

—CNBC's Patti Domm and Fred Imbert contributed to this report.