Market Review: June 05, 2026

Closing Recap

Friday, June 05, 2026

U.S. stocks posted their worst day since last year, with the Nasdaq falling over 4% this afternoon, led by a sharp pullback in the semiconductor index (SOX) down over 10% (largest drop since April ’25) after hitting all-time highs 2 days ago as investors locked in some profits amid rising interest rate hike fears hitting sentiment following the third strong jobs data report of the week. In addition to the rising rate fears, Wall Street investors await a busy week of potential catalysts as earnings season is now behind us (though a few notables next week like ORCL), with the massive SpaceX IPO coming next Thursday, Apple’s (AAPL) WWDC conference starting next week and several central bank meetings on the agenda, along with key inflation data (CPI, PPI for May). The profit taking in semiconductor chips (SOX still +75% YTD) erased over $1 trillion in stock market value. Nasdaq posted its biggest daily drop since April 2025, the S&P 500 largest since October 2025. For the week, S&P 500 down -2.59% (snapping its win streak at 9 weeks), Nasdaq down -4.68%, Dow down -0.32%.

Odds of the Federal Reserve striking interest rate hikes hit 52% on Kalshi (up from 25% before the jobs data). Those odds come after Friday’s report from the Bureau of Labor Statistics revealed nonfarm payrolls hit 172,000, comfortably exceeding Dow Jones expectations of 80,000, rising a third month with upward revisions. President Trump weighed in on the jobs report and stock market reaction this morning saying, “The just‑released jobs report was very strong and that stocks should rise rather than fall, adding this has been the case over the past 200 years and that economic growth does not mean inflation.” But Wall Street didn’t agree, at least for today with interest rate sensitive sectors (utilities, REITs, Smallcaps, long-duration growth) pressured as Russell 2000 index drops to two-week low, after outperforming Thursday. With a higher-than-expected job report and the annual core inflation rate hitting 3.3% in April, economists see a fed hike approaching. The rate fears has weighed on crypto as well as Bitcoin falls below $60,000 for first time since October 2024 today in a sharp downdraft, cut my more than half its all-time highs.

Key events on the calendar next week include the: 1) SpaceX (SPCX) IPO expected to price next Thursday night (6/11) with 555.6M shares to price at $135 per share, opening the flood gates for a wave of expected high profile IPOs in coming months with OpenAI and Anthropic among them. 2) Apple (AAPL) holding its Worldwide Developers conference (6/8-6/12), which is widely expected to be a software-focused event (no major new hardware like foldable iPhones or new Macs at the keynote). The spotlight will be on the “27” series of operating systems: iOS 27, iPadOS 27, macOS 27, watchOS 27, tvOS 27, and visionOS 27. The deals come after recent IPOs from CBRX and QNT the last 2 weeks with much hoopla, but since shares of both have fallen well off highs. 3) Central bank meetings with the Bank of Canada (BOC) on Wednesday June 10^th, European Central Bank (ECB) decision on Thursday 6/11 (the week after is FOMC and BoJ).

• Treasury yields jumped on Friday and for the week behind rising expectations of Fed rate hikes following stronger jobs data points all week and ahead of key inflation data next week. The 10-yr yield rose 6.2bps to 4.537%, its 7^th highest level this year and rising 8.4% on the week. Yield is off 13.1bps from its 52-week high of 4.668% hit Tuesday, May 19, 2026. The 2-yr yield jumped 11.2bps to 4.16%, a new 52-week high and its highest yield since 2/24/25, rising 14.6bps this week.
• Following a down day yesterday, WTI crude futures slipped slightly again overnight as no particularly confrontational headlines emerged from the US/Israel/Iran/Lebanon discussions. After the open, stories of Iran firing warning shots at US destroyers in the Gulf of Oman were quickly denied by the US and oil was free to continue its pull-back. Later Fitch headlines reminded investors the oil market likely will return to a state of oversupply once the Strait of Hormuz reopens … and the slide continued before settling off the lows but still -$2.50/bbl, or -2.69%, at $90.54.
• The dollar index climbed to a two-month high on haven demand, as rising Treasury yields and growing expectations of a Fed rate hike after a strong U.S. jobs report weighed on risk sentiment. Euro slid to a two‑month low after the strong U.S. jobs data lifted U.S. yields, while the GBP softened, with downside risks toward May lows near 1.33 amid U.K. political and equity-driven volatility. Dollar/yen held above 160 amid positioning and intervention concerns.

• For used cars (CVNA, KMX): Manheim Used Vehicle Value Index May index is up 0.3% month over month. Overall index rose to 212.6, reflecting a 3.6% increase for wholesale used-vehicle prices (adjusted for mix, mileage, and seasonality) compared to May 2025. The May index is up 0.3% month over month. The long-term average monthly move for May is an increase of 0.9%. Non-adjusted wholesale vehicle prices are now up 3.1% year over year, and down 1.2% against April. The long-term average monthly move in non-adjusted values is a decrease of 0.3% in May.

• GIII raises its annual profit forecast to $2.15-$2.25 vs previous forecast of $2.00-$2.10 despite posting Q1 EPS loss (-$0.21) v. est. loss (-$0.30) on better revs and maintains annual net sales forecast of $2.71B and notes loss of about $470M of sales from Calvin Klein and Tommy Hilfiger products after loss of licenses
• In Restaurants: CMG was upgraded to Overweight from Neutral at JPMorgan but lower tgt to $35 from $38, after meeting with management and noting shares are down 43% since May 2025 and at levels first hit in 2021, sees much more risk-weighted upside than downside.

• Energy E&P sector: SU was downgraded to Neutral from Buy at Goldman Sachs as improved operations, strong upstream execution, robust downstream earnings and capital returns under CEO Rich Kruger now appear more fully reflected in the stock
• Utilities: SRE said its ECA LNG Phase 1 project has begun producing liquefied natural gas as part of commissioning activities ahead of full commercial operations. The facility will supply U.S. natural gas to Asia and other Pacific markets via shorter shipping routes, cutting transit times and costs.
• BBCP) shares soar as Q2 revs $106.8Mm (+13.7% YoY beat $96.7Mm est.); gross profit $41.3Mm (+14% YoY vs. $36.2Mm), Q2 EBIT $12.1Mm (+46% YoY vs. $8.3Mm) vs est $9.099Mm; raises guides FY26 revs $410Mm–$425Mm from prior $390Mm–$410Mm) vs est $404Mm; raises FY26 adj. EBITDA $98Mm–$105Mm (from prior $90Mm–$100Mm) vs est $98.24Mm.

• In FinTech/Payments: ADYEY shares fell after Cleveland Research out with cautious comments on payments sector; FISV was downgraded to Underperform from Neutral at BNP Paribas with a $46 price target; overall group remains weak as GPN shares had recently slumped after Mizuho said weakness was tied to Street commentary suggesting Q2 estimates might need to be revised downward (Mizuho had defended shares on 6/3 on such calls)

• Medical Supplies: COO EPS beat of $1.21 versus Street $1.10 while Q2 revenue/EPS upside was tempered by management lowering FY26 CVI guidance—a function of a softer APAC market and some company specific challenges—and FY26 EPS guidance was left unchanged.

• Gold and silver miners tumble on weak precious metals prices with gold -2.5% weighing on shares of FSM, HL, AEM, NEM, WPM as rate hike fears rise given the stronger jobs data this week (JOLTS, ADP and nonfarm payrolls today), coupled with higher inflation readings.
• Industrials: ABM posts Q2 revenue and profit above Wall Street estimates on strong Technical Solutions and Aviation growth as overall revs $2.3B topped ests $2.21B with EPS $0.90 vs. est. $0.87 and said expects FY26 revenue growth toward top end of 4% to 5% range
• E&C sector: AGX posts revs/ebitda of $291M/$56M vs street $256M/$41M and said project pipeline remains robust, with heightened demand for our capabilities as the electrification of everything, the onshoring of domestic manufacturing, and the proliferation of data centers continue to create an urgent need for additional energy infrastructure pos for E&C.
• Space sector: PL reported better Q1 results, beating consensus revs/EPS by +4.6%/+$0.02 while guiding Q2 revenue above by +3.6%; Q1 revenue growth accelerated to 42% Y/y (highest in 12 Qs) on sustained strength in EMEA (+88% Y/y) and Defense & Intelligence segment sales (+68% Y/y) while backlog impressively increased 72% Y/y to $906MM. SpaceX ​said ‌on Friday ⁠it ‌has entered ‌into a ​cloud ⁠service agreement ​with Alphabet’s Google ​for ‌access to ⁠compute ⁠capacity.

• AI Sector: META shares fell after the Financial Times reported the company is considering a major equity raise to fund its artificial intelligence infrastructure. Senior U.S. officials held preliminary discussions with major AI companies about the potential for the government to buy some shares in ‌their firms, digital news outlet NOTUS reported on Thursday, citing three people ‌familiar with the matter – Reuters. META is in talks with CLSK to secure space in its data center facility, Green Street News Infrastructure reports, which has roughly 250 MW of total capacity
• Quantum stocks tumbled (RGTI, IONQ, QBTS, QMCO, INFQ) following Quantinuum’s (QNT) initial public offering IPO on the Nasdaq on Thursday. QNT shares dropped 8% by early afternoon trading, taking it below its IPO price of $60 during its second day on the market. The company originally planned to price shares in the $45 to $50 range, but strong buyer demand pushed up the price and the number of shares offered. The IPO generated nearly $1.7B for Quantinuum.

• GWRE delivered solid Q3 results but mixed FY26 guidance, with FY26 ARR coming in behind consensus; modest Q3 ARR miss (within guide but below Street) and maintained full year ARR outlook; Q3 ARR of $1.147B (consensus $1.148), up 19% Y/y (18% in cc) vs 22% q/q (21% in cc), coming in at the midpoint of guidance, below prior beat patterns on deals that slipped into Q4.
• IOT reported solid FQ1 results with ARR growth holding steady at 30% Y/y, similar to prior quarter. Large customer momentum was again the standout, along with strength in multi-product adoption and emerging products; raised its FY27 guide across all key metrics with implied ARR growth guide moving up to ~24% Y/y.
• RBRK delivered strong FQ1 results & raised FY27 ARR guidance in excess of the beat; NNARR (+16% Y/Y) beat was the smallest since IPO, but it was still approx. in-line w/ investor expectations. Cloud NNARR growth of +5% y/y was weak due to less migrations/tough comps; Q1 subscription ARR of $1.57B grew 32% y/y, above the Street’s 31% forecast; FY27 ARR guide raised by $24M.
• TTAN reported beat and-raise Q1, with GTV growing 23% y/y (fastest growth in any quarter), rev increasing 25% y/y, and non-GAAP Outperform margin surpassing 15% all topping consensus while Enterprise traction also remained strong, w/customers above $100K in annualized billings representing over 60% of billings.
• Gaming Software: APP and U were both upgraded to OP at Edgewater Research with their latest research showing a mobile games industry noticeably shifting toward more ad supported monetization, a critical release valve for APP and a direct answer to bear concerns that non-gaming ads will cap upside by cannibalizing core gaming. Unity was upgraded saying their research showing U’s staggered catalysts continuing to contribute, with more to come.