The S&P 500 Index ($SPX) (SPY) on Friday closed down -2.64%, the Dow Jones Industrial Average ($DOWI) (DIA) closed down -1.35% and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -4.77%. E-mini S&P June futures (ESM26) fell -2.97% and E-mini Nasdaq June futures (NQM26) fell -5.09%.
Stock indexes suffered heavy selling on Friday, with the S&P 500 and Nasdaq 100 hitting two-week lows. Investors dumped semiconductor and AI infrastructure companies and sold large-cap technology stocks that earlier this week sent U.S. stock indexes to record highs. Technology stocks retreated amid a long sell-off and profit-taking after Broadcom’s outlook for chip sales fell short of high expectations, raising concerns that the rally in AI trading has been excessive.
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Stock indexes added to their losses on Friday as bond yields soared following the better-than-expected U.S. payrolls report for May, reinforcing speculation that the Fed’s next move on interest rates will be a rate hike. The 10-year Treasury yield rose to a two-week high of 4.55%.
US Nonfarm Payrolls in May increased by +172,000, higher than expectations of +88,000. Additionally, April Nonfarm Payrolls were revised upward to +179,000 from +115,000 previously reported. May’s unemployment rate was unchanged at 4.3%, right in line with expectations.
May US average hourly earnings increased +0.3% MoM and +3.4% YoY, right in line with expectations.
Consumer credit in the US in April increased by $20,733 million, exceeding expectations of $17,670 million.
Crude oil prices fell more than -2% on Friday, even as the United States and Iran have made little progress in talks on an interim peace deal, and clashes between Israel and Hezbollah militants continue in Lebanon. Iran insists on a ceasefire in Lebanon before accepting a US deal to extend the truce and reopen the Strait of Hormuz. President Trump said Thursday that negotiations with Iran are in the “final” stages without elaborating, while Iranian Foreign Minister Abbas Araghchi previously said there had been “no tangible progress” despite both sides continuing to exchange messages through mediators.
Markets are pricing in a 1% chance of a +25bp rate hike at the next FOMC meeting on June 16-17.
The usually favorable first-quarter earnings season is coming to a close. As of Friday, 84% of the 496 S&P 500 companies that reported first-quarter earnings beat estimates. S&P 500 first-quarter earnings are expected to rise 12% year-over-year, according to Bloomberg Intelligence. Excluding the technology sector, first quarter earnings are expected to rise around +3%, the weakest level in two years.
Foreign stock markets closed lower on Friday. The Euro Stoxx 50 closed with a drop of -0.68%. China’s Shanghai Composite fell to a 7-week low and closed down -0.74%. Japan’s Nikkei Stock Average closed down -1.31%.
Interest rates
The September 10-year Treasury bond (ZNU6) closed down -16.5 ticks on Friday and the 10-year Treasury yield rose +6.9 bps to 4.542%. September Treasury bond prices fell to a two-week low on Friday, and the 10-year Treasury yield rose to a two-week high of 4.552%. Treasuries retreated on Friday amid a larger-than-expected increase in U.S. May nonfarm payrolls and a sharp upward revision to April nonfarm payrolls, reinforcing speculation that the Federal Reserve’s next move will be an interest rate hike.
European government bond yields rose on Friday. The 10-year German Bund yield rose to a two-week high of 3.051% and finished +1.6 bps at 3.038%. The 10-year UK bond yield rose +0.5 bp to 4.903%.
Eurozone first quarter GDP was revised down to -0.2% q-o-q and +0.3% y-o-y from the previously reported +0.1% q-o-q and +0.8% y-o-y.
Swaps are pricing in a 100% probability of a +25bp rate hike by the ECB at its next policy meeting on June 11.
US Stock Engines
AI chipmaker and infrastructure stocks are retreating for a second day today after Broadcom’s outlook for chip sales fell short of high expectations, raising concerns about whether the rebound in AI trading has been excessive. Marvell Technology (MRVL) closed down more than -16% to lead the losers on the Nasdaq 100, and Micron Technology (MU) closed down more than -13%. Additionally, ARM Holdings Plc (ARM) closed down more than -12%, and Intel (INTC), Sandisk (SNDK), ON Semiconductor (ON), and Western Digital (WDC) closed down more than -10%. Additionally, Advanced Micro Devices (AMD) and Qualcomm (QCOM) closed down more than -9%, and Applied Materials (AMAT), KLA Corp (KLAC), Seagate Technology Holdings Plc (STX), and Lam Research (LRCX) closed down more than -8%. Finally, Broadcom (AVGO), NXP Semiconductors NV (NXPI), and Microchip Technology (MCHP) closed down more than -7%, and ASML Holding NV (ASML) and Texas Instruments (TXN) closed down more than -6%.
Magnificent Seven tech stocks fell sharply on Friday. Tesla (TSLA) and Nvidia (NVDA) closed down more than -6%, and Meta Platforms (META) closed down more than -5%. Additionally, Amazon.com (AMZN) closed down more than -3% and Microsoft (MSFT) closed down more than -2%. Additionally, Alphabet (GOOGL) and Apple (AAPL) closed with losses of more than -1%.
Cryptocurrency-exposed stocks plunged on Friday, as Bitcoin (^BTCUSD) fell more than -5% to a 20-month low. Galaxy Digital Holdings (GLXY) closed down more than -11%, and MARA Holdings (MARA) and Riot Platforms (RIOT) closed down more than -10%. Additionally, Coinbase Global (COIN) closed down more than -7% and Strategy (MSTR) closed down more than -6%.
Mining stocks sold off on Friday as gold, silver and copper prices plunged. Hecla Mining (HL) closed down more than -12% and Coeur Mining (CDE) closed down more than -11%. Additionally, Southern Copper (SCCO) closed down more than -10% and Freeport McMoRan (FCX) closed down more than 9%. Additionally, Anglogold Ashanti (AU) closed down more than -8%, and Newmont Corp (NEM) and Barrick Mining (B) closed down more than -7%.
Defensive consumer staples companies rebounded on Friday amid the broader market decline. Clorox (CLX) closed up more than +5% and Procter & Gamble (PG) closed up more than +4% to lead the gains in the Dow Jones Industrials. Additionally, Kimberly-Clark (KMB) and Colgate-Palmolive (CL) closed with gains of more than +4%, and Coca-Cola (KO) and Tyson Foods (TSN) closed with gains of more than +3%.
Guidewire Software (GWRE) closed down more than -9% after forecasting Q4 subscription and support revenue of $259 million to $265 million, the midpoint below the consensus of $263.6 million.
Lululemon Athletica (LULU) closed down more than -8% after cutting its 2027 net revenue forecast to between $11 billion and $11.15 billion from a previous forecast of $11.35 billion to $11.50 billion, below the consensus of $11.49 billion.
DocuSign (DOCU) closed down more than -6% after forecasting full-year adjusted gross margin of 81.5% to 82%, the midpoint below the 81.8% consensus.
Fiserv (FISV) closed down more than -3% after BNP Paribas downgraded the stock to underperform from neutral with a $46 price target.
Cooper Cos (COO) closed up more than +8% to lead gains in the S&P 500 after reporting second-quarter net sales of $1.08 billion, better than the consensus of $1.05 billion.
G-III Apparel Group Ltd (GIII) closed up more than +5% after raising its 2027 Adjusted EPS forecast to $2.15 to $2.25 from a previous estimate of $2.00 to $2.10, above the consensus of $2.09.
ServiceTitan (TTAN) closed with a gain of more than +4% after reporting first-quarter revenue of $268.8 million, above the consensus of $256.7 million.
Chipotle Mexican Grill (CMG) closed up more than +4% after JPMorgan Chase upgraded the stock to overweight from neutral with a $35 price target.
Earnings Reports (6/8/2026)
Campbell’s Company/The (CPB), Graham Corp (GHM), Hub Group Inc (HUBG), Mama’s Creations Inc (MAMA), Mission Produce Inc (AVO), Motorcar Parts of America Inc (MPAA), Nano-X Imaging Ltd (NNOX), Oil-Dri Corp of America (ODC), Replimune Group Inc (REPL), Vail Resorts Inc (MTN), XCF Global Inc (SAFX).
On the date of publication, Rich Asplund had no (directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. This article was originally published on Barchart.com
