The Nasdaq marked its worst week since April—mostly driven by Friday’s selloff as enthusiasm for artificial intelligence and semiconductor stocks cooled following quarterly reports from Broadcom (AVGO) and Ciena (CIEN).
Hewlett Packard Enterprise (HPE) shares surged dramatically after the company reported results that exceeded expectations and raised its outlook.
Cybersecurity stocks Palo Alto Networks (PANW), CrowdStrike (CRWD), and Rubrik (RBRK) pulled back following their earnings announcements, though this came after substantial prior gains.
SpaceX (SPCX) established a price target for its initial public offering, which is anticipated to launch late next week.
Crude oil futures climbed but trimmed their weekly advances.
Treasury yields increased, influenced by rising oil prices and a robust employment report.
Market Performance and Key Index Movements
The Dow Jones led major indices over the past week, reaching new highs.
The S&P 500 declined solidly, while the Nasdaq tumbled, with both indices ending lengthy weekly winning streaks.
The Nasdaq fell below its 21-day line for the first time since the current market rally was confirmed.
AI and semiconductor stocks faced substantial selling pressure during the week, partly in reaction to declines in Broadcom (AVGO) and Ciena (CIEN).
Crude oil prices surged but later gave back some of the weekly increase.
Treasury yields jumped, supported by a strong jobs report.
Robust Employment Data
Friday's employment report came in twice as strong as anticipated, showing the addition of 172,000 jobs.
This strength was sufficient to increase market expectations for a Federal Reserve interest rate hike by the end of the year.
A 43,500 increase in local government payrolls marked the largest gain since 2019, though similar increases were reversed in the following two months that year.
Meanwhile, a surge of 70,000 jobs in leisure and hospitality was likely boosted by hiring ahead of the World Cup.
Upward revisions to March and April data added 93,000 more jobs, resulting in an average monthly gain of 188,000 over the prior three months.
Coupled with a stable 4.3% unemployment rate, the data suggests the Federal Reserve need not worry about labor market weakness and can maintain its focus on inflation.
Broadcom Stock Declines Despite Strong Results
Chip designer and infrastructure software provider Broadcom (AVGO) slightly exceeded analyst expectations for its fiscal second quarter and provided a positive outlook.
However, the stock fell as investors had hoped for even stronger results.
Broadcom's Q2 adjusted earnings increased 54% while sales jumped 48% to $22.19 billion.
This marked the company's fourth consecutive quarter of accelerating revenue growth, with even faster gains projected for the next two quarters.
For the current quarter ending August 2, Broadcom forecast revenue surging 84% to $29.4 billion.
Ciena's Market Reaction Disappoints
Ciena (CIEN) reported fiscal Q2 earnings that soared 290%, with revenue growing 40% to $1.57 billion, boosted by data center orders.
Both metrics modestly beat expectations.
The manufacturer of optical communications equipment provided a slightly higher revenue outlook for Q3 and the full year.
Ciena stock gapped down on Thursday but managed to hold support at its 50-day moving average.
Hewlett Packard Enterprise Shares Soar
Hewlett Packard Enterprise (HPE) announced fiscal Q2 earnings rose 107%, with sales increasing 40% to $10.7 billion, including results from recently acquired Juniper Networks.
Both figures easily surpassed expectations.
Revenue from cloud and AI, which includes its AI server business, rose 23% to $7.71 billion, exceeding estimates of $6.93 billion.
For the current quarter, HPE provided significantly higher guidance for fiscal Q3 and full-year revenue and also issued guidance for fiscal 2027.
HPE stock spiked to a fresh high, extending its winning streak to 13 consecutive weeks.
SpaceX Details IPO Plans and Valuation
SpaceX presented its case to investors ahead of its expected initial public offering, which is scheduled to price on June 11 and begin trading on the Nasdaq the following day.
The company plans to offer 555.6 million shares at $135 each, aiming to raise $75 billion with an initial valuation of $1.77 trillion.
The spaceship, broadband, and AI company outlined ambitious goals supported by CEO Elon Musk, including establishing a lunar base with manufacturing and energy production capabilities.
It sees a total addressable market potential of up to $28.5 trillion.
The company plans to deploy its reusable Starship next year and launch space-based data centers in 2028.
SpaceX also intends to manufacture its own chips, in collaboration with sister company Tesla (TSLA).
In 2025, SpaceX generated $18.674 billion in sales, reported an operating loss of $2.589 billion, and had adjusted EBITDA of $6.584 billion.
Elon Musk is restricted from selling shares for one year following the IPO.
The stock will trade under the symbol SPCX.
S&P Dow Jones Indices decided not to alter or waive entry requirements for mega-cap IPOs, meaning SpaceX will not be eligible for inclusion in the S&P 500 for at least 12 months after going public.
Cybersecurity Sector
CrowdStrike Holdings (CRWD) announced a 51% rise in first-quarter earnings, with revenue climbing 26% to $1.39 billion, inclusive of acquisitions. Total annualized recurring revenue grew 24% to $5.51 billion, slightly exceeding expectations. The company provided fiscal second-quarter revenue guidance that was marginally higher and declared a four-for-one stock split. Palo Alto Networks (PANW) reported flat fiscal third-quarter profit, while revenue increased 31% to $3 billion, which included a $388 million contribution from acquisitions, also slightly beating forecasts. Subscription-based ARR reached $8.1 billion, modestly above estimates. For the quarter ending in July, Palo Alto anticipates revenue of $3.35 billion, including acquisitions, and remaining performance obligations of $20.95 billion, surpassing estimates of $3.28 billion in sales and $20.25 billion in RPO.
Data storage and security software firm Rubrik (RBRK) reported adjusted first-quarter earnings of 16 cents per share, a turnaround from a 15-cent loss per share a year earlier. Revenue surged 39% to $387.1 million, exceeding analyst predictions of a 3-cent loss on revenue of $366.3 million. Annual recurring revenue rose 32% to $1.57 billion. For the current quarter ending in July, Rubrik forecast revenue of $396 million at the midpoint of its guidance range, topping estimates of $383.5 million.
Nvidia Makes Move into AI PC Arena
Nvidia (NVDA) unveiled an AI-enabled personal computer chip, RTX Spark, at the Computex trade show in Taiwan. PC manufacturers including Dell (DELL) and HP (HPQ) will incorporate the new chip into laptop and desktop PCs designed for agentic AI applications starting this autumn. The Nvidia PC chip will compete with processors from established players AMD (AMD) and Intel (INTC). In other news from Computex, Marvell Technology (MRVL) announced the availability of the industry's first 102.4 terabits-per-second switch silicon designed specifically for AI and cloud data center infrastructure. Marvell's stock soared to record levels after Nvidia CEO Jensen Huang suggested the company could be the next to reach a $1 trillion market capitalization. Other companies gaining on news from the event included Arm Holdings (ARM), Cadence Design Systems (CDNS), and Navitas Semiconductor (NVTS).
Credo's Results Fail to Impress
Credo Technology (CRDO) reported fiscal fourth-quarter sales and earnings that exceeded consensus estimates. However, its stock retreated from record highs during a volatile week following forecasts of contracting profit margins. The maker of AI data center connectivity equipment reported a 231% increase in earnings per share, with sales skyrocketing 157% to $437 million. Credo has now posted six consecutive quarters of triple-digit revenue growth, with one more quarter of such growth anticipated.
Pharmaceutical and Biotechnology Developments
The American Society of Clinical Oncology meeting in Chicago last week delivered mixed results for biopharmaceutical and medical technology stocks. Promising names such as Grail (GRAL) and Celcuity (CELC) saw sharp declines, while Legend Biotech (LEGN) shares surged more than 42% in a single day. Grail's stock tumbled after the company presented mixed results for its cancer-screening blood test, Galleri, while Celcuity plummeted on its breast cancer trial results. Celcuity's three-drug regimen doubled the likelihood of survival without disease progression, but the duration of this benefit decreased compared to earlier testing. Legend's stock rocketed after the biotech firm reported that all six lymphoma patients who received its in vivo CAR-T drug responded to the treatment. Bristol Myers Squibb (BMY), Pfizer (PFE), and AstraZeneca (AZN) also reported positive test results in multiple myeloma, colon cancer, and liver cancer, respectively.
Argan Delivers Strong Earnings Beat
The heavy construction firm's earnings more than doubled, easily surpassing expectations, fueled by ongoing strength in electrification and reshoring trends. Revenue jumped 50% to $291 million, accelerating rapidly from a 2% gain in the August-October quarter and a 13% increase in the prior quarter. Its backlog, however, eased to $2.767 billion. CEO David Watson described the project pipeline as "robust," citing strong demand for factory onshoring, data center expansion, and broader electrification trends. The company's shares advanced.
China EV Manufacturers and Tesla Lifted by Export Performance
In May, the highly competitive Chinese electric vehicle market produced mixed results as leading automakers pivoted toward international growth. BYD (BYDDF), the global EV leader, reported a marginal 0.2% monthly gain with 383,453 vehicles sold, though its overseas sales surged by 80%. Meanwhile, Leapmotor and Nio (NIO) posted substantial year-over-year delivery increases of 81% and 62.3%, respectively. In contrast, smaller players like XPeng (XPEV) and Li Auto (LI) struggled, facing respective declines of 4% and 18.4%.
Amid this intense competition, Tesla's operations in China showed continued recovery. The Shanghai factory delivered 85,982 cars in May, a 39% increase compared to a year earlier. Year-to-date, Tesla's China-made vehicle sales are up 29%, supported by exports as domestic sales face some challenges.
Discount Retailers Decline on Mixed Financials
Five Below (FIVE) on Wednesday surpassed estimates with a 158% increase in adjusted earnings on 32.5% revenue growth. Comparable sales spiked 22.7%. Five Below also raised its 2026 earnings and revenue forecasts. However, analysts reduced price targets after management cited consumer concerns, leading to a sharp drop in the stock price. Ollie's Bargain Outlet (OLLI) on Wednesday reported a 21% gain in earnings per share, exceeding expectations, but its 14% sales growth fell short. Ollie's lifted its full-year adjusted earnings outlook but trimmed its sales forecast. OLLI stock fell sharply for the week, hitting two-year lows. Dollar General (DG) on Tuesday topped earnings expectations but missed on sales growth. The company slightly raised its 2026 earnings guidance. Its shares declined.
Stock Market News In Brief
Victoria's Secret (VSXY) announced a 15% increase in first-quarter fiscal sales, reaching $1.56 billion, with comparable sales up 13% and adjusted earnings per share surging to 60 cents from 9 cents. The results significantly exceeded the intimate apparel retailer's own projections and analyst expectations. The company attributed the strong performance to a greater proportion of sales at regular prices and fewer promotions, which helped offset challenges from tariffs. Victoria's Secret also upgraded its financial outlook for both the current quarter and the full fiscal year. Following the announcement, the company's stock price skyrocketed 47% on Tuesday, marking its largest single-day gain ever.
Generac (GNRC) disclosed that it secured an agreement to supply backup power generators to a major hyperscale data center operator. While specific financial details were not released, the company noted that demand from data centers is a primary driver of its growth. The news propelled the stock to a new record high.
Quantinuum (QNT) launched its initial public offering at $60 per share, a price above its anticipated range. The company sold an increased offering of 28 million shares, raising $1.68 billion and achieving an initial market valuation of $15.6 billion. Quantinuum, which remains majority-controlled by its parent company Honeywell (HON), saw its shares rise as much as 18% on its first trading day before closing with a minimal gain. The stock subsequently fell below its IPO price by Friday. The quantum computing sector continues to see new public listings, though companies within it are still not profitable as they work towards commercializing the technology.
Liftoff Mobile (LFTO), a company seen as a potential competitor to AppLovin (APP) in the mobile advertising technology market, completed its IPO. It sold 19 million shares at $23 each, exceeding its projected price range of $20 to $22. The stock surged 24% during its market debut on Thursday. For the previous year, Liftoff Mobile reported a net loss of $23.1 million on revenue of $685 million.
Planet Labs (PL) reported a quarterly loss that was smaller than analysts had forecast, while its revenue grew 42% to $94.2 million. The satellite imaging and data analytics firm provided sales guidance for 2027 in the range of $425 million to $441 million. However, it expects its adjusted EBITDA to be between breakeven and a profit of $10 million. Planet Labs also announced a new at-the-market equity offering program to raise up to $1.5 billion. Following these announcements, the company's stock price declined sharply, falling below its 50-day moving average.
