U.S. stock futures pointed higher Thursday as investors digested a stronger-than-expected jobs report that dampened expectations for near-term Federal Reserve rate cuts. Dow futures gained 143 points, or 0.3%, while Nasdaq 100 futures climbed 73 points, or 0.3%, as markets shifted focus to upcoming corporate earnings and inflation data.

Cisco Systems shares plunged more than 7% in extended trading after the networking giant reported second-quarter gross margins of 67.5%, missing analyst estimates of 68.14%. The shortfall stemmed from rising memory chip costs driven by surging AI data center spending. CEO Chuck Robbins told investors Cisco has already raised prices and revised customer contracts, projecting AI orders to exceed $5 billion in the current fiscal year.

January's nonfarm payrolls reading of 130,000 jobs added and unemployment falling to 4.3% all but eliminated bets for a Fed rate cut before the second half of 2026. Markets now price in a July rate cut, later than previous expectations for June. The report revealed healthcare as the primary job growth engine while professional services showed weakness, suggesting AI adoption may be reshaping white-collar hiring patterns.