MARKET SNAPSHOT
U.S. stocks fell, weighed down by a selloff in tech stocks and interest-rate worries. Crude futures fell amid hopes of easing hostilities in the Middle East, while Treasury yields and the dollar rose. Gold and silver settled lower.
MARKET WRAPS
EQUITIES
A sharp selloff in AI stocks intensified after a better-than-expected jobs report raised worries about higher interest rates.
The Nasdaq composite closed 4.2% lower, weighed down by a 6.2% decline in Nvidia stock and a 7.9% drop in Broadcom, whose relatively weak guidance on Wednesday spurred fears that AI demand may not grow as quickly as previously thought. The Nasdaq is down about 4.7% for the week, its sharpest weekly decline in more than a year. The Dow industrials were more resilient, down about 1.3% Friday and off 0.3% for the week. The S&P 500 was down 2.6% on the day and week, ending nine consecutive weeks of gains.
Jitters grew Friday after a hot jobs report stoked fears of inflation. The Labor Department said employers added 172,000 jobs in May, more than double the 80,000 forecasted by economists.
Investors now expect the Federal Reserve to keep rates high throughout 2026, and increased bets that the central bank will have to raise them. Traders now see a roughly 70% chance officials will hike rates by the end of the year, compared to a little less than 50% before the report's release, according to CME data.
Tech names tied to AI remained under the heaviest pressure with Micron, Marvell, Intel, AMD, Qualcomm and ARM Holdings all down 10% or more. Fast-growing tech companies can be particularly exposed to higher rates because high bond yields decrease the value Wall Street assigns to companies projecting high profits far into the future.
Earlier Friday, stocks in Asia fell.
South Korean chip stocks fell sharply, tracking their U.S. peers' Thursday retreat and prompting the stock market operator to briefly halt trading to reduce volatility. Shares of SK Hynix, a leading high-bandwidth-memory supplier for Nvidia, fell 9.9% as of early afternoon trade. Samsung Electronics, the world's top memory-chip maker, lost 6.4%. The Kospi 200 fell 6%.
Semiconductor-related stocks led declines in Japan's Nikkei Stock Average. The benchmark index dropped 1.3%.
Chinese semiconductor stocks also fell after rallying earlier in the week. The Shanghai Composite slid 0.7% The Shenzhen Composite fell 1.3%, and the ChiNext Price Index ended 3.2% lower. In Hong Kong, the Hang Seng index fell 1.2%.
Australia's S&P/ASX 200 Benchmark Index dropped 0.7%, while the S&P/NZX 50 Index added 0.5% in New Zealand.
COMMODITIES
Crude futures settled lower with market expectations of a resolution to the U.S.-Iran conflict outweighing concerns of a renewed flare-up.
"The oil market has definitely gotten the sense that President Trump wants this thing over," said John Kilduff of Again Capital. Fears are increasing that the U.S. will "agree to anything to get it over with for a while so these prices can really come back down," he added.
The trickle of tankers making it through the Strait of Hormuz isn't resolving the problem and the market has been relying on storage, but stocks are running down as the strait remains effectively closed, Kilduff said. "The cliff in my opinion is in the beginning of July. That's when the real crunch should dawn."
WTI ended down 2.7% at $90.54 a barrel and Brent fell 2% to $93.09.
Gold settled down 3.1% Friday, and silver fell nearly 6.6%, with both metals also posting losses for the week.
TODAY'S TOP HEADLINES
May Jobs Growth Puts U.S. on a Strong Hiring Streak
The U.S. labor market has climbed out of a rut.
The country added more jobs than expected in May, posting strong payroll gains for the third month in a row. Despite uncertainties around the Iran war, inflation, trade and artificial intelligence, the report suggests the U.S. labor market is steadily recovering from its weak patch last fall and winter.
WTO's Leading Indicator Points to Continued Trade Resilience
Global flows of goods across borders continue to show resilience despite the uncertainty caused by the conflict in the Middle East, according to a leading indicator compiled by the World Trade Organization.
The Geneva-based body that mediates trade disputes Friday said its Trade Barometer fell to 101.7 in June from 102.3 in January. A reading above 100 indicates exports and imports are rising at a faster pace than the average rate recorded over recent decades.
The slight decline indicates that while the pace of trade growth is expected to moderate over coming months, it is set to remain above the average rate recorded over recent decades.
Week Ahead for FX, Bonds: U.S. Inflation Data Due, ECB Likely to Raise Rates
U.S. inflation data in the coming week will be closely watched as investors gauge how likely it is that the Federal Reserve will raise interest rates this year.
In Europe, focus will be on a European Central Bank meeting, where a rate increase is widely expected. A rate decision is also due in Canada.
In Asia, investors will focus on a slate of releases, with China set to publish trade and price-trend data, while Japan will report growth figures that will provide a snapshot of economic conditions across the region, alongside India's inflation data.
Google to Pay SpaceX Nearly $1 Billion a Month in Cloud-Computing Deal
Google has agreed to rent data-center capacity from SpaceX, expanding the rocket company's artificial-intelligence business ahead of its initial public offering.
Google will pay SpaceX $920 million a month from October 2026 to June 2029 in a deal that includes the computing capacity of at least 110,000 Nvidia chips, according to a SpaceX securities filing on Friday.
The deal will ramp up over the summer, and Google has the right to cancel the agreement in October if SpaceX doesn't provide the promised chips, SpaceX said. Either party can cancel the agreement starting next year with 90 days' notice.
Morgan Stanley Sees SpaceX's Revenue Reaching $3.4 Trillion in 2040
To support the $1.77 trillion valuation Elon Musk's SpaceX is targeting in its initial public offering, bankers are telling investors to look to the future.
SpaceX's revenue could reach $3.4 trillion in 2040, according to a Morgan Stanley analysis shared with top investors Thursday, according to people familiar with the matter.
Morgan Stanley told investors the rocket maker's adjusted earnings before interest, taxes, depreciation and amortization in 2040 could top $2.7 trillion, the people said.
Quantinuum Stock Falls After Uninspiring Quantum IPO Debut. What Went Wrong?
Quantinuum stock popped in its trading debut, opening 13% above its initial public offering price in what seemed to be a major win for the quantum computing industry. That momentum is quickly fading, with the shares set to fall Friday after a flat first day.
Shares opened at $68 on Thursday before easing to $60.38, ending the session with a gain of just 0.6%. Regardless, the stock outperformed other notable names in the sector: IonQ closed down 3.8% while D-Wave Quantum and Rigetti Computing added 0.3% each.
But Quantinuum fell into the red on Friday as it slid nearly 9% to $55.02, firmly below its offer price. Peer stocks were faring even worse, with IonQ., D-Wave, and Rigetti each down more than 11% as the broader market slid.
Expected Major Events for Monday
04:30/JPN: May Corporate Insolvencies
05:00/JPN: May Economy Watchers Survey
09:00/SIN: May Official Foreign Reserves
10:59/INA: May International Reserves
17:00/NZ: May QV Nationwide Residential Property Values
22:45/NZ: 1Q Business Financial Data
23:00/SKA: 1Q Revised GDP / Preliminary Gross National Income
23:50/JPN: May Money Stock, Broadly-defined Liquidity
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This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
June 07, 2026 16:30 ET (20:30 GMT)
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