OPENING CALL
The selloff in shares of companies tied to AI looked poised to continue, with a swath of companies declining premarket, though Dow futures were up.
Thursday saw the Dow outperform the Nasdaq by the most in over a year, as Broadcom lost $286 billion in market value and Micron fell 7.7%, subtracting $94.24 billion in market capitalization.
The S&P 500's nine-week win streak is now in jeopardy, with the index up just 0.1% this week.
"If the dramatic rise of trillion-dollar chip companies was a sign that the AI theme still has legs, we got glimpses of the AI-fatigue too from a trillion-dollar chip company, as its market cap fell below $2 trillion, " German fund manager DWS said.
Investors will be reacting to the latest jobs data, expected to show 80,000 jobs created last month and an unchanged unemployment rate of 4.3%.
"U.S. labor data matters because in the Wile E. Coyote trajectory consumers need to cut their savings rate to pay for higher prices and maintain spending," UBS said.
News that SpaceX won't be granted early entry into the S&P 500 may also reverberate.
BMI, a unit of Fitch Solutions, said the Anthropic-OpenAI-SpaceX IPO pipeline raised the question of whether the market can absorb so many megalistings in a short period of time.
Investors seemed willing, it said, but that doesn't mean they could absorb concurrent megacap listings, particularly when the businesses have yet to convert revenue scale into sustained profitability.
And, while the closure of the Hormuz Strait has now lasted 14 weeks oil was edging down as traders looked to be concentrating on hopes of a peace deal rather than signs of tension in Lebanon.
"Energy analysts warn that rapid inventory drawdowns from the Strait of Hormuz closure are likely to deliver fuel price shocks, with prices across the energy complex expected to remain higher for longer ," Saxo Bank said.
Stocks to Watch
Almonty Industries said it would raise $700 million through an offering of convertible senior notes. The stock was down 13% after hours Thursday.
Coinbase Global, Robinhood Markets, Strategy: Shares of companies tied to cryptocurrency retreated premarket as bitcoin extended its fall toward $60,000.
Docusign fell premarket despite a bump in its revenue guidance for the year after stronger uptake of its AI-powered platform helped lift its profit and revenue.
Guidewire Software 's annual recurring revenue was short of Wall Street estimates. Shares fell 15% after the bell Thursday.
Lululemon cut its outlook for the year and reported falling sales in North America. Shares fell 12% premarket.
ServiceTitan lifted its outlook and reported earnings that beat analyst expectations. Shares rose 14% after hours Thursday.
Watch For:
Employment Report for May; Canada Labour Force Survey for May
Today's Top Headlines/Must Reads:
-Anthropic Urges Global Pause in AI Development, Flags 'Self-Improvement' Risk
-Security Chiefs Unfazed by Federal AI Oversight
-JPMorgan, Citi and Big Banks Plan New Tokenized Deposit System to Answer Crypto
MARKET WRAPS
Forex:
The dollar fell slightly as investors awaited nonfarm payrolls and uncertainty over the Iran war remained elevated.
Following months of weak jobs growth, the labor market appeared to be stabilizing and Friday's data could exceed expectations with payrolls rising 100,000 in May, Commerzbank said.
"The key factor for the dollar is the extent to which the figures bolster market expectations of further interest rate hikes."
Despite the yen's renewed weakness near the 160 level Japan's yen-buying operations aren't limitless.
While the government can immediately use cash deposits for intervention, it would also need to sell its holdings of Treasurys to raise dollars in case of large yen-buying, dollar-selling operations.
That could drive up U.S. bond yields, making Washington nervous and potentially straining relations between the two countries.
Bonds:
Treasury yields were stable to marginally lower.
Energy:
Oil prices slipped, but were headed for weekly gains as renewed tensions in the Middle East and uncertainty over U.S.-Iran talks dampened hopes for an imminent, gradual reopening of the Hormuz Strait.
A renewed ceasefire between Israel and Lebanon faced immediate strain, as both sides exchanged fire within hours of the agreement.
"The oil market continues to trade on expectations of an imminent resumption in energy flows from the Persian Gulf," ING said.
"This leaves significant upside risk as inventories fall and we move closer towards the stronger demand period of the third quarter."
Metals:
Gold traded below $4,450 and was on track for a weekly loss as uncertainty surrounding U.S.-Iran peace talks and renewed hostilities in the Middle East weakened sentiment.
Concerns over sustained disruptions to energy shipments through the Hormuz Strait have supported higher oil prices and heightened inflation risks, strengthening prospects of higher-for-longer interest rates or potential hikes that would weigh on non-yielding assets.
Gold Chart
Although the latest bullish candlestick pattern shows that selling pressure for comex gold futures was taking a minor breather, the overall technical setup remained bearish, based on the daily chart, RHB said.
The nearest support for the commodity was expected at $4,400, while initial resistance was pegged at $4,650.
TODAY'S TOP HEADLINES
Apple's Plan for AI Dominance Rests on Fixing Its Much-Maligned Chatbot
Siri is one of the dumbest chatbots on the market. Apple hopes a reboot can power its AI comeback.
When Apple stages its annual developer conference next week, the big reveal is expected to be a modern version of Siri that will look more like ChatGPT. Gone will be the old version, which has been so limited for so long that many people, if they ever use it, do so only for basic functions like setting timers.
Now You Can Get a Subway Sandwich With Your Walmart Delivery
Walmart is getting into the restaurant-delivery business.
The retail giant said Thursday it will offer customers the option to order 30-minute delivery from 1,400 Subway locations inside its stores by this summer, the next stage of its plan to use its driver network to go toe-to-toe with food-delivery companies such as Uber Technologies and DoorDash.
FDA Launches Study of Abortion Pill Safety as Opponents Push for Limits
WASHINGTON-The Food and Drug Administration has launched a safety study of the abortion pill, also known as mifepristone, a step that could pave the way for the Trump administration to restrict how it is distributed and used.
The study marks a victory for antiabortion groups and Republican members of Congress, who have demanded action from the administration to crack down on the pill's use. In recent months, antiabortion allies had lost patience with assurances from administration officials that a study would be conducted.
Texas AG Paxton to Probe Whether Celsius Marketed Energy Drinks to Children
Texas Attorney General Ken Paxton has launched an investigation into Celsius Holdings to probe whether the company knowingly marketed energy drinks toward children and teenagers.
The investigation will focus on the Alani Nu line of energy drinks, sold by a Celsius subsidiary and marketed with "colorful packaging, playful design elements, and youth-oriented branding strategies," Paxton's office said Thursday. The branding raises "serious questions about whether the company is deliberately marketing a potentially harmful product to an at-risk population."
BOE Survey Finds Businesses Expect to Raise Prices at Faster Rate
U.K. businesses polled in May expected to raise their prices at a faster rate, but wage increases were seen slowing, according to a Bank of England survey released Friday.
Some 2,086 chief financial officers were questioned between May 8 and 22, with energy prices having jumped after the attacks on Iran in late February and remained high since.
Eurozone Economy Shrank in First Quarter as Iran War Darkens Outlook Ahead
The eurozone's economy contracted in the first quarter, driven by declines in output in Ireland and France, complicating the European Central Bank's task as it seeks to cool rising inflation without unduly damaging economic activity.
Gross domestic product in the 21-nation currency area fell 0.2% in the first three months of 2026, the European Union's statistics agency Eurostat said Friday, weaker than the 0.1% growth reported for the period in mid-May.
Senate Passes $70 Billion Border-Enforcement Bill Without Killing Trump Fund
WASHINGTON-Republican senators stopped short of using their political leverage to kill President Trump's $1.8 billion "anti-weaponization" fund, approving a critical immigration-enforcement bill without adding language reining in the controversial program.
Passage of the $70 billion package funding Immigration and Customs Enforcement and Border Patrol through the end of Trump's second term came after a more than 19-hour session of amendment votes and intraparty negotiations. The GOP-backed measure passed 52 to 47, with Republican Sen. Lisa Murkowski of Alaska voting with Democrats against the bill.
Real-Time Satellite Intelligence Is Making Ukraine's Drone Strikes Deadlier Than Ever
The small unit of the Ukrainian Armed Forces, stationed about 10 kilometers from the front line in the country's southeast, knew there was something afoot in a building obscured by thick tree cover. The spring foliage hid its outline but not the signals from the electronic devices within.
The team launched a reconnaissance drone, which couldn't see much through the trees. But the soldiers had another card to play: high-definition, near-real-time images taken by commercial satellites, delivered directly to their phones, tablets and laptops.
(MORE TO FOLLOW) Dow Jones Newswires
June 05, 2026 06:00 ET (10:00 GMT)
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