Market Review: June 02, 2026

Closing Recap

Tuesday, June 02, 2026

There has been just no slowing down Wall Street, as the S&P 500 (SPX) and the Nasdaq Composite each made it a 9^th straight day of gains, and new all-time highs for them along with the Dow Jones Industrials as the momentum in technology stocks (XLK) keep the strength alive. The S&P 500 (SPX) hit its sixth straight all-time high and has now reached an all-time high 24 times in 2026, crossing above 7,600 for second straight day. A year ago, it was at 5,900. Five years ago, it was at 4,200. And 10 years ago, it was at 2,100! The standout performer in the S&P 500 this year has been memory chip player Micron (MU), with shares up 262% YTD and has recently crossed the $1 trillion market cap threshold for the first time. Overnight, NVDA CEO Huang said MRVL could be the next trillion dollar company – his comments were good enough to send shares soaring over 30% today! Just massive bets made daily in tech/AI complex as capex numbers go higher and guidance and earnings continue to push up the whole complex semis, AI, data center, hyperscalers, opticals, now hardware/storage! Other sector rallied alongside tech today as Industrials (XLI) jumped 1%, helped by power names (needed for AI) like GNRC, ETN, etc. and Materials (XLB) also went up over 1% while the defensive sectors (XLV, XLP) lagged. Opticals, semis, rallied as Google is selling $80B of its own stock to fund AI capex, ending decade of buybacks. It has been a strong run for tech (XLK +37% YTD, SOX +92% YTD), will it continue without a breather? After lagging yesterday on a spike in oil prices, the Russell 2000 index outperformed as Smallcaps were strong and VIX volatility index continues to tumble. Treasury yields change little from yesterday amid no visible progress in U.S.-Iran talks to reopen Hormuz.

Federal Reserve Bank of Cleveland President Beth Hammack said that the U.S. central bank may need to act “soon” to combat inflation pressures that are already too high and are on a worrisome trend. “If we wait for definitive evidence that high inflation has become embedded in the economy, it may require larger policy adjustments, at greater cost.” For now, “it’s reasonable to keep rates steady given the uncertainties around the economic outlook. But if recent trends continue, it may soon be appropriate to act,” the official said.

To recap, U.S. stock markets continue to grind higher despite headlines out of the Middle East that Iran pauses talks, while Israel pushes into Lebanon as tech/ai growth/demand is the only thing that matters to investors and Wall Street. Oil advanced, gold bounced and the dollar softened after a recent bounce as all eyes on Friday’s non-farm payrolls – the number that could move Fed expectations. Eurozone inflation at its highest since September 2023 and inflation in the U.S. has been climbing steadily the last few months.

• Bitcoin extended losses as crypt selloff deepens, down around -6% or $3,565 below $67,000, the first time below since early April when it held in range around $65K-$67K and deeper corrections around $60K in Feb-March. Momentum selling after news that MSTR sold Bitcoin for the first time in three years weighing on sentiment along with outlook for no Fed rate cuts in 2026 given rising inflation.

• Apparel Retail: VSXY shares jumped on results as Q1 sales $1.56B topped consensus $1.52B and providing upbeat guidance as raised annual net sales to be in the range of $7.03B-$7.13B vs previous forecast of $6.85B-$6.95B and annual adj operating income to $550M-$580M from $430M-$460M. NKE shares weak perhaps on news Golden State Warriors superstar Stephen Curry announced a new partnership with Chinese shoe company Li-Ning after his 13-year partnership with UA ended this past November.
• Specialty Retail: SIG beat earnings expectations and raised its full-year outlook as Q1 EPS $1.56 vs $1.38 est. and in-line revenue $1.55B with average unit retail +5%; narrows FY27 adj EPS view to $9.20-$11.20 from $8.80-$10.74 and Narrows FY27 revenue view to $6.7B-$6.9B from $6.6B-$6.9B (est. $6.84B).
• Beauty Products: EL merger with Jean Paul Gaultier-owner Puig (PUGBY) failed to go through because of the price tag, Stephane de La Faverie, President and CEO of the U.S. cosmetics maker said on Tuesday, but added the company was still open to acquisitions if they made financial sense – Reuters. ULTA is expected to report earnings after the close tonight.
• Online Retail: AMZN plans to offer Prime customers megadeals earlier than usual this year as the e-commerce giant announced its annual Prime Day event will kick off on June 23 and run through June 26. The sales event is typically held in July.
• Consumer Products: in tobacco, PM cut its annual profit forecast citing margin pressure due to higher energy costs; now expects 2026 adj EPS of $8.31-$8.46, a growth of 10.2%-12.2% y/y and lower than a prior forecast range of $8.36-$8.51 (est. $8.41 per share).
• Restaurants: SHAK shares fell after cutting its guidance for Q2 (now sees comps +2.5-3% vs. prior +3-5%) and the full year (now sees EBITDA $225-235MM vs. the prior $230-245MM), just a few weeks after the stock tumbled on back of underwhelming Q1 results (shares sank ~28% on 5/7 after earnings).

• Space sector: VOYG said to acquire Astrobotic Technology, accelerating America’s path to the moon in a deal valued up to $300M, expected to close by early July 2026; SPCE said it will redeem up to $30.5M notes using stock; up to $30.5M of 9.80% First Lien Notes to be redeemed using common stock; transaction could eliminate all mandatory principal payments through 2027 and remaining principal would not be due until March 31, 2028, if completed. SpaceX (SPCX) is targeting a $75B offering at a valuation of at least $1.8 trillion, which would make it the largest stock market on record – Bloomberg. FLY subsidiary SciTec awarded $5.5M U.S. Air Force Contract Option for CBC2 Data Fusion System. SciTec received a $5.5M contract option under a previously awarded $24M ABMS contract. SPCE shares snap 7 day win streak tumbling today.
• In Chemicals: SHW was downgraded to Neutral from Buy at UBS and lowered their target to $330 from $385 saying the company’s earnings are highly leveraged to a U.S. housing recovery, and the unsupportive housing market pushes that timeline further out. BAYRY shares fell ahead of the June 4 deadline for plaintiffs to accept the class-action settlement regarding the glyphosate dispute in the U.S. The company proposed in February a $7.25B legal settlement to address tens of thousands of lawsuits claiming its glyphosate weedkiller Roundup causes cancer.

• In Banks: NU downgraded from Neutral to Underperform at Bank America and cut tgt to $10 from $16 after the company announced that CFO Guilherme Lago will step down and transition to a Special Advisor role, effective July 13, with Rob Livingston appointed as the new CFO.
• In Crypto: assets tumbling with Bitcoin dropping below $67,000, accelerating selling pressure the last few weeks down over 6% and Ethereum -3.25% down around $1,940, as Bitcoin now down nearly -$6,000 since Strategy (MSTR), disclosed its first sale in over 3 years yesterday.
• Financial Services: INTU was downgraded from Neutral to Sell at Goldman Sachs with $276 tgt saying their primary concern is that Intuit is entering a period of heightened competition in tax. Goldman thinks it may be challenging for Intuit to achieve its long term financial targets.
• In Lending: shares of FNMA, FMCC both weakened early after President Trump appointed Bill Pulte, the head of the Federal Housing Finance Agency, as acting director of National Intelligence. Pulte will remain in his role as FHFA director and as chairman of the government administered mortgage giants.
• Insurance sector: KBW estimate May 2026’s industry-wide homeowners renewal rate change at +4.3% Y/y (April 2026: +4.7%). Only two top-10 Carriers’ (Allstate’s and USAA’s) May 2026 renewal rate changes were above their respective February 2026 rate changes; most leading homeowners insurers’ rate increases are slowing. Filings approved to date (which could change in the coming weeks) similarly point to decelerating Y/y increases in coming months.

• CELC shares fall after posted detailed data from a Phase 3 trial testing its lead candidate, gedatolisib, in breast cancer; said the Phase 3 VIKTORIA-1 trial indicated that experimental therapy was associated with a Grade 5 treatment-related adverse event, which the company attributed to palbociclib.
• FULC shares tumbled after announced it is discontinuing the development of pociredir for the treatment of sickle cell disease after the FDA highlighted concerns regarding the potential secondary hematologic malignancies; Fulcrum has launched a review of the strategic alternatives while management moves to reduce operating expenses in order to preserve capital.
• LEGN shares jumped after data showed early success in extending CAR-T therapy to solid tumors & presenting Phase 1 data for LB2501 later this month.
• PRAX shares fell after saying its experimental epilepsy drug did not meet the main goal of reducing monthly seizure frequency in a mid-to-late-stage study; said it will pause enrollment in another ongoing study to reassess the vormatrigine program and determine potential modifications; treatment met a secondary measure where more patients saw at least a 50% reduction in seizures.
• RZLT said it saw positive interim results in its late-stage trial testing the drug ersodetug in patients with tumor hyperinsulinism; says six of eight participants have already met the main goal of achieving at least a 50% reduction from baseline in intravenous glucose requirements.
• TVTX enters into exclusive licensing agreement with Everest Medicines for civorebrutinib a potential best-in-class BTK inhibitor for rare kidney diseases; Everest to receive $112.5M upfront for civorebrutinib rights and is eligible for up to $1.03B in additional milestone payments.
• VERA and the FDA reached an agreement to allow Vera to accelerate the analysis of a confirmatory Phase 3 study involving atacicept, its treatment for the chronic kidney disease IgA nephropathy. The drug is already under review for accelerated approval, with a decision expected by July 7.
• Medicare patients eligible for GLP-1 weight loss drugs will be able to get them for $50 a month starting in July, U.S. Centers for Medicare and Medicaid Services Mehmet Oz told a briefing on Tuesday.

• ARM CEO Rene Haas told Bloomberg News that he’s hopeful Arm’s new AGI CPU will reach its $15B sales target ahead of its initial 2031 target; said that it would be difficult to block the export to China of CPUs that are useful for AI because of their widespread use and as it would be difficult to block only AI CPUs, per Reuters. "CPUs are kind of like oil relative to the application space," Haas said.
• AVGO launches Edge AI Portfolio with Wi-Fi 8 And 50G PON; introduced a new Edge AI semiconductor portfolio spanning seven broadband and networking product categories. Unveiled an industry-first 50G ITU PON Gateway SoC with an embedded NPU, alongside new Wi-Fi 8 solutions
• INTC CEO Chen Liwu said at Computex Taipei that CPU demand is increasing while supply is constrained; over the past four weeks multiple company CEOs have called requesting more CPUs, which he called an opportunity for Intel. He added Intel has made significant progress in its wafer Foundry business and is engaging many potential customers.
• MCHP shares jump; says to implement Selective price increases across broad product portfolio; price increase will have no impact on guidance or results for fiscal qtr ending June 30, 2026; Data center solutions business unit generated $302.7M revenue in 2025; expects 65% growth to $500M in 2026.
• MRVL shares surge after NVDA CEO Huang called the chipmaker the next "trillion-dollar company". NVDA CEO Jensen Huang made the remark at the Computex conference in Taipei; earlier this yr, NVDA invested $2B in MRVL for its custom AI chips used in data centers.
• STM raised its data-center revenue targets, saying demand for Ai infrastructure continues to boom; said it now expects data-center revenue to come in at about $1B this year, against its prior forecast of above $500M; Data-center revenue could double in 2027, assuming current trends continue.
• SMCI announced a new class of AI-centric solutions featuring Arm(R) AGI CPUs. The increasing compute demands of modern agentic AI require a new class of rack-scale infrastructure that maximizes compute performance within the power envelopes and physical footprints of enterprise data centers.

• Computer Hardware: HPE shares surged after Q2 results crushed estimates as sales were up 40% y/y to $10.68B vs. est. $9.77B on big EPS beat driven by Networking segment up 148% (up double digits organically) and Cloud & Ai segment up 23% and EBIT margins came in at 13.3%, up 530bps Y/y. Notably, Cloud & Ai strength of 23% was driven by x86 server revenues up 33% and traditional server orders were up >100% and Ai systems backlog came in at $5.9B; also raised its Q3 and FY26 EPS/rev guidance well above street as FY26 guide calls for EPS of ~$3.30 (vs. Street at 2.42).
• AI Data Center/Infrastructure: GOOGL announced it has raised $80 billion to build AI infrastructure. Also has reached an agreement to sell $10B of stock to Berkshire Hathaway (BRK) in a private placement, comprised of $5B in Class A Common Stock at a price of $351.81 per share and $5B in Class C Capital Stock at a price of $348.20 per share. Data Infrastructure: CRDO reported another beat and raise quarter, as near-term revenue growth continues to be driven by AEC proliferation and customer diversification; raised FY27E expectations to 80% y/y (75% prior) supported by $600M and FY27E optical revenue; stock saw pressure after 1%/ 2% beat/raise failed to meet prior double-digit %. Optical/HPC names saw big gains after the GOOGL news, Bullish semis and bullish the TPU-related supply chain in particular (AVGO, MRVL, CLS, TTMI, LITE, COHR, etc.) as well as Data center related names WULF, CIFR, IREN, etc.
• Quantum Compute: QMCO announced select preliminary unaudited financial results for its Q4 as sees revs approximately $77.5M, plus or minus $2M, above the high-end of the guided range of $68M, plus or minus $2M; GAAP operating expenses of approximately $30.5M and cash of approximately $15.5M. QMCO to sell 10.62M shares at $9.42 per share in private placement, to use $94.7M to repay all existing term debt and announces $100M private placement led by Two Seas Capital & Oaktree Capital.
• Handset sector: Huawei is the only Chinese smartphone brand expected to grow shipments in 2026, even as the global smartphone market faces its steepest annual decline on record, per Counterpoint. Counterpoint projects global shipments will fall 13.9% to ~1.08B units as memory shortages and higher chip costs squeeze the market. Apple and Samsung are better insulated by premium pricing power, while Chinese Android brands face more pressure from thin margins and price-sensitive buyers.
• In Internet: META said it is expanding its content settings for teen accounts on Instagram, Facebook and Messenger globally to ensure age-appropriate experiences for younger users, it said on Tuesday, as social media platforms face growing scrutiny about child health and safety.
• The White House issued an executive order on advanced AI innovation and security. The order directs federal agencies to prioritize AI-enabled cyber defense across national security, defense, and civilian government systems. It also calls for an AI cybersecurity clearinghouse to coordinate vulnerability scanning, validation, patching, and remediation with industry and critical infrastructure operators. The order creates a voluntary framework for frontier AI developers to work with the government on classified cyber benchmarking and pre-release model access, while explicitly saying it does not create mandatory licensing or preclearance for new AI models.