S&P 500 – 7,383.74 (-2.64%)

Dow Jones – 50,866.78 (-1.35%)

NASDAQ – 25,709.43 (-4.18%)

• MARKET MOVEMENT: U.S. stocks and bonds fell sharply on Friday after a stronger-than-expected jobs report pushed expectations for interest rates higher, sending Treasury yields upward. The S&P 500 dropped 2.64% to 7,383.74, the Dow Jones fell 1.35% to 50,866.78, and the Nasdaq tumbled 4.18% to 25,709.43, marking its worst session since April 2025.
• NASDAQ AND TECH WEAKNESS: The Nasdaq 100 dropped 4%, continuing the tech weakness from Thursday, while the semiconductor-heavy PHLX Semiconductor Index fell nearly 9%, reflecting profit-taking, weak guidance, and concerns about rising interest rates.
• OVERSEAS MARKETS: South Korea’s equity index, heavily influenced by Samsung, fell 5.5% after a year of strong gains, highlighting global tech sector pressure.
• DEFENSIVE SECTOR PERFORMANCE: Defensive sectors such as consumer staples held up better, partially offsetting tech-led losses.
• OIL AND TREASURIES: Oil prices fell 3%, while the 10-year Treasury yield rose to 4.54%, reflecting expectations of continued rate increases.
• AMAZON NEWS: Amazon is accelerating its AI-driven warehouse automation with the launch of its Proteus robot, capable of understanding natural-language commands to transport items in fulfillment centers. The company continues corporate workforce reductions even as it invests in automation and robotics.
• BITCOIN: Bitcoin sank below $60,000, reaching its lowest level since October 2024. The decline came amid ETF outflows, macroeconomic pressures, and a rotation of investor interest toward AI-related assets. Bitcoin futures fell another 2.5% early Friday, pressuring crypto-related stocks like Strategy (MSTR) down 2.3% and Coinbase Global (COIN) down 1.8%. Analysts note potential support near the 200-week moving average.
• SPACEX-GOOGLE DEAL: SpaceX signed a $920 million-per-month deal to provide Google with large-scale AI compute capacity, giving access to approximately 110,000 Nvidia GPUs and other hardware from October 2026 through June 2029. Either party can terminate with 90 days’ notice after the first year, and the agreement ensures bridge capacity for Google’s Gemini Enterprise AI services.
• TELECOM M&A: A Bouygues-led consortium including Bouygues Telecom, Orange, and Free-iliad agreed to acquire SFR from Altice France for €20.35 billion ($23.44 billion), pending regulatory approval. If completed, the deal would reduce France’s mobile network operators from four to three, raising antitrust concerns.
• CHIP STOCKS: U.S.-traded chipmakers suffered a historic selloff, erasing over $1 trillion in market value. Nvidia fell 6%, Micron Technology dropped 4%, AMD lost 10.5%, Marvell Technology fell 12%, and Broadcom declined 7.5%. Weak guidance from Broadcom and profit-taking fueled the selloff.
• LULULEMON PERFORMANCE: Lululemon (LULU) plunged 10% in early trading after lowering its full-year guidance despite narrowly beating quarterly earnings estimates.
• HEALTHCARE SECTOR GAINS: The S&P healthcare sector rose 3%, led by UnitedHealth (UNH) and Humana (HUM) after UNH was upgraded to buy by Bank of America. Eli Lilly (LLY) also gained on CVS Health’s coverage decisions for its new weight-loss pill and Zepbound injectable.
• APPLE PERFORMANCE: Apple (AAPL) remained near record highs ahead of its Worldwide Developers Conference on Monday, with investors expecting AI-related updates, including improvements to Siri and other platform features.
• U.S. EMPLOYMENT DATA: The U.S. economy added 172,000 jobs in May, above the expected 90,000, while the unemployment rate stayed at 4.3%. Revisions added 93,000 jobs from the prior two months. Gains were broad-based, led by leisure and hospitality and healthcare.
• WHAT TO WATCH NEXT: Traders will monitor upcoming economic reports, including CPI, trade balance, crude oil and natural gas inventories, and the Treasury budget, alongside corporate earnings from Oracle, Adobe, and Aurora Cannabis. Investor focus will remain on AI developments, semiconductor performance, and potential market reactions to the next wave of high-profile earnings and economic data.

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“Bitcoin is exciting because it shows how cheap it can be.”

 — Bill Gates

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Notable Stocks

• Nvidia (NVDA)
• Alphabet (GOOGL)
• Broadcom (AVGO)
• Amazon (AMZN)
• Tesla (TSLA)

Weekly Notables

Google Agrees to Pay SpaceX $920 Million a Month for AI Compute Capacity

SpaceX has signed a deal to provide Google with large-scale AI compute capacity, in an agreement worth $920 million per month over 32 months, according to a regulatory filing Friday, as the rocket company moves closer to a planned IPO. Under the agreement, Google will access roughly 110,000 Nvidia GPUs along with CPUs, memory, and other hardware housed in SpaceX data centers. The contract runs from October through June 2029 at the stated monthly rate, with capacity ramping up through September at a reduced fee.

Amazon Unveils Next-Gen Warehouse Robot Amid AI Layoffs

Amazon has introduced its latest warehouse robot, Proteus, capable of responding to natural language commands, highlighting the tech giant’s push to integrate AI-powered automation even as it continues corporate workforce reductions. The new autonomous mobile robot can understand plain-language instructions and transport items in fulfillment centers. The original Proteus, launched in 2022, is currently in use at 25 U.S. centers. Amazon plans to roll out the updated version across Europe in the first half of 2027 as part of a broader €10 billion ($11.6 billion) investment in modernizing European operations.

Earnings Spotlight: Oracle Corp. (ORCL)

Oracle is scheduled to report its fiscal fourth-quarter 2026 earnings on June 10, 2026. Wall Street projects adjusted earnings per share of $1.96 on roughly $19.1 billion in revenue. The company’s financial performance will heavily hinge on data center expansion costs and surging AI infrastructure demand.

What's Ahead

Economic:

• Monday (6/8): no reports
• Tuesday (6/9): Existing Home Sales, Trade Balance, Wholesale Inventories
• Wednesday (6/10): Consumer Price Index (CPI), EIA Crude Oil Inventories, MBA Mortgage Applications Index, Treasury Budget
• Thursday (6/11): Continuing Claims, EIA Natural Gas Inventories, Initial Claims, Producer Price Index (PPI)
• Friday (6/12): University of Michigan Consumer Sentiment

Earnings:

• Monday (6/8): Campbell's Co. (CPB), FuelCell Energy Inc. (FCEL), Graham Corp. (GHM), Motorcar Parts of America Inc. (MPAA), Mission Produce Inc. (AVO), Vail Resorts Inc. (MTN)
• Tuesday (6/9): Academy Sports and Outdoors Inc. (ASO), Casey's General Stores Inc. (CASY), Cracker Barrel Old Country Store Inc. (CBRL), J.M. Smucker Co. (SJM), Sailpoint Inc. (SAIL), Uranium Energy Corp. (UEC), VinFast Auto Ltd. (VFS)
• Wednesday (6/10): Anterix Inc. (ATEX), Chewy Inc. (CHWY), Core & Main Inc. (CNM), Navan Inc. (NAVN), Oracle Corp. (ORCL), Oxford Industries Inc. (OXM)
• Thursday (6/11): Adobe Inc. (ADBE), Aurora Cannabis Inc. (ACB), Lennar Corp. (LEN), Lovesac Co. (LOVE), McGraw Hill Inc. (MH), RH Inc. (RH)
• Friday (6/12): no reports