Market Review: June 01, 2026

Closing Recap

Monday, June 01, 2026

The tech party continues on Wall Street! U.S. stock markets stayed higher, adding to last week/monthly gains thanks in large part due to strength in Technology as the XLK rose over 2.5% and Energy (XLE) jumped nearly 2% behind a surge in oil prices, while the other S&P sectors were down on the day. After Technology led markets higher (XLK) +19% last month vs XLV Healthcare +2.4% as next best sector, the trade carried over into June with huge advances in shares of software stocks, AI data center plays and neoclouds. The never ending rotation in tech keeping the Nasdaq around all-time highs as semiconductors/AI plays did the heavy lifting the first 5 months of the year (SOX +80% YTD) but took a small breather today as software (IGV, MDB, ORCL, CRM, HUBS, TWLO, MNDY) surged across the board after lagging the first quarter and Mag 7 mega caps AAPL, AMZN, META, TSLA fell hard to kick off the month. It feels like every day its all about tech…which is because it has been…as it remains so as the key driver for sentiment and demand. Attention may turn to jobs data this week with JOLTs job openings, ADP private payrolls and nonfarm payrolls…but to this point, rising Treasury yields on higher inflation concerns and a surging economy have done nothing to dent market sentiment. Stocks slipped late day off highs following more comments out of the Middle East from Netanyahu.

Wall Street overlooked a massive surge in oil prices, with WTI crude jumping as much as 8% before paring gains after the U.S. and Iran launched new attacks against each other, further eroding the ceasefire that has already been testing its limits. At the same time, Israel has ramped up its military offensive in Lebanon. Prime Minister Benjamin Netanyahu ordered attacks on Hezbollah-controlled suburbs in Beirut, Reuters reported. Iranian Foreign Minister Abbas Araghchi in an X post Monday morning said, “The ceasefire between Iran and the US is unequivocally a ceasefire on all fronts, including in Lebanon.”

Market action has been pretty straight forward the last 10-weeks, as the S&P 500 is up 9 consecutive weeks and up 8 straight days as well around 7,600 today, with investors still buying technology stocks hand over fist. it’s been as simple as when oil spikes (like today) small caps, gold, bitcoin, bonds and real estate dump. When oil dumps then those sectors have tended to rally, with tech rallying in either scenario! Semiconductors were mixed early after another monstrous month of returns in May (up 80% YTD), led by declines in INTC, QCOM, AMD after reports NVDA debuted its RTX Spark superchip for Windows laptops, which includes a Blackwell GPU and Grace CPU, will power laptops from manufacturers. The news also lifting shares of PC hardware makers while Nvidia rose 4% after unveiling a new chip that puts AI capabilities directly into laptops and desktop computers. All three major indexes closed at new record highs on Monday.

Very busy week of upcoming IPOs, as the calendar getting busier and bigger names (SpaceX expected net month and OpenAI and Anthropic also expected in coming months): AADX Applied Aerospace & Defense, $634M deal (32.5M shares in $18-$21 range), Aerospace & Defense components (expected Tuesday night pricing); INIO INNIO Holding, $1.91B deal (75M shares price range $24-$27), Natural gas engines & power Generation systems (expected pricing Wednesday night); QNT Quantinuum, $1.43B deal (26.5M shares, price range $53-$55), Honeywell Quantum Computing carve-out (expected pricing Wednesday night); SSMR Sunshine Silver, $300M deal (20M shares with price range $13.50-$16.5), Idaho Silver mining & refining project (expected Wednesday night); SFPT Safepoint, $267M deal (16.67M shares, price range $15-$17), Coastal property insurer (expected pricing Wednesday night); WHK Whitehawk Minerals, $180M deal (2.925M shares, price range $25-$27), U.S. Natural gas royalties (expected Thursday night).

• ISM U.S. manufacturing activity index 54.0 in May (consensus 53.0) vs 52.7 in April; prices paid index 82.1 in May (consensus 85.0) vs 84.6 in April; new orders index 56.8 in May vs 54.1 in April; employment index 48.6 in May (consensus 47.5) vs 46.4 in April.
• US April construction spending +0.4% (consensus +0.2%) to $2.172 trln, vs March +0.2% (prev +0.6%); April private construction spending +0.4%, public spending +0.4%.

• U.S. Treasury yields climbed, with the benchmark 10-year Treasury rising bps to 4.474%, off earlier highs above 4.51% after sliding from more than 15 month highs last week. Iran’s Tasnim news agency said Tehran’s negotiating team is stopping exchanges of messages with the United States through mediators due to attacks on Lebanon, as diplomatic efforts to end the three-month-old Iran war continue. Yields fell last week on cautious optimism progress was being made towards a peace agreement between the U.S. and Iran, which pushed oil prices down to their lowest level since mid-April.

• In Food & Restaurants: CPB was downgraded to Equal Weight from Overweight at Stephens and lower tgt to $21 from $28 saying promotional intensity in the packaged food industry remains elevated across many categories, and recent commentary from Walmart and Kroger suggests this dynamic will continue. YUM is in exclusive discussions to sell its Pizza Hut chain to LongRange Capital. Yum entered the exclusive talks in recent days, beating out offers from Sycamore, according to a Bloomberg report.

• Casinos & Gaming: MGM shares jumped after People Incorporated, previously IAC, announced that it has submitted a non-binding proposal to the Board of Directors of MGM to acquire all outstanding shares of MGM that People Incorporated does not already own for $48.30 per share in cash valuing the casino at $18B. People Incorporated today owns 26.1% of the outstanding common stock of MGM.
• Chinese Electric vehicles: LI announced that it delivered 33,350 vehicles in May 2026. As of May 31, 2026, Li Auto’s cumulative deliveries reached 1,702,792. Since March, monthly deliveries of Li i6 have consistently exceeded 20,000 units. NIO said 7,705 vehicles were delivered in May 2026, increasing by 62.3% y/y; 150,526 vehicles were delivered year-to-date in 2026, increasing by 68.7% y/y; cumulative deliveries reached 1,148,118 as of May 31. XPEV announced its vehicle delivery results for May 2026. XPENG delivered a total of 32,158 vehicles in May, representing a 4% increase from the prior month.
• Lodging/Hotels: Goldman Sachs takes a more constructive view on the timeshare sector, upgrading VAC and TNL to Buy and HGV to Neutral, driven by a shift in investor focus toward execution-driven earnings growth and self-help initiatives alongside resilient domestic travel demand. Goldman highlights VAC as a compelling turnaround with improving execution and undervalued earnings power (PT $100), TNL as a conservative guidance story with strong recurring growth and valuation support (PT $85), and HGV as more balanced following integration progress and improved fundamentals but with less near-term upside (PT $55).
• Cruise sector: Loop Capital initiated NCLH at Buy and $22 PT, CCL Buy and $36 PT and VIK Buy and $108 PT with a hold on RCL $304 PT saying they view the short-term and long-term outlook for the industry favorably, with Cruise experiences representing a relatively affordable way to vacation compared to other options. In the short-term, with the current macro backdrop Loop believes Cruise Line operators Catering to the high-end Luxury consumer and entry-level Contemporary consumer are likely to see the greatest demand.

• Trucking sector: KNX, WERN, JBHT, ODFL shares rallied early as @FreightAlley noted on X, “Major overnight surge on truckload spot rates to new all-time high. Truckload van spot rates moved up $.09/overnight to $3.83/mile, the highest level in history. This is happening despite fuel prices cooling, reinforcing that rate inflation has been driven by supply/demand in trucking and not diesel price pass thru. For those not following trucking closely: trucking is a commodity and prices are driven by supply/demand.”
• Airlines: JBLU, AAL, ALK, UAL, ULCC among airlines pressured by the spike in oil prices today (WTI crude up over 8% at $94.40 per Barrel); JBLU raised its Q2 fuel costs forecast as the global aviation industry grapples with rising jet fuel prices amid disruptions from the closure of the Strait of Hormuz; now expects fuel to cost between $4.26 and $4.36 per gallon, compared to an earlier forecast of $4.13 to $4.28; said demand for travel in Q2 has remained strong and consistent with trends observed earlier in year.
• Homebuilders sector: sector was strong after Berkshire Hathaway Inc. agreed to acquire TMHC in an all-cash deal worth about $6.8B as the offer of $72.50 per common share represents a 24% premium to the home builder’s latest closing price on Friday. The deal is expected to close in the second half of this year.

• EWTX shares jumped after saying it would sell its sevasemten and its muscular dystrophy business for up to $2.65B to Servier, an independent pharmaceutical group run by a foundation. Servier will pay $1.55 billion in upfront cash consideration and up to $1.1 billion in additional milestone payments.
• Haisco Pharmaceutical Group Co., Ltd. announced a licensing and research collaboration with LLY to develop innovative medicines across multiple therapeutic areas. Haisco will be eligible to receive up to $87M in upfront and near-term payments, up to $2,967M in all remaining downstream milestones.
• IVVD announces completion of enrollment in upsized DECLARATION clinical trial, a phase 3 pivotal study of VYD2311, an investigational antibody to prevent COVID; rapid enrollment of upsized cohort leaves top-line results on track for approximately late Q3.
• OCS reported that the Phase 3 DIAMOND-1 and DIAMOND-2 trials of OCS-01 eye drops in diabetic macular edema both missed the primary endpoint of mean change in best corrected visual acuity from baseline to Week 52
• ONC announced new data from its solid tumor pipeline being presented at the 2026 American Society of Clinical Oncology (ASCO) Annual Meeting, including: The 240 mg dose of BGB-43395 plus letrozole resulted in a confirmed overall response rate (ORR) of 68.4% (95% CI: 43.4-87.4) and unconfirmed ORR of 73.7%.
• PYPD completes new drug application submission to FDA for D-plex100; FDA decision on D-plex100 expected in Q1 2027 under PDUFA timeline.
• REPL said final first-in-human data for RP2 alone in combination with nivolumab in patients with advanced solid tumors. RP2 monotherapy achieved an objective response rate (ORR) of 19.0%, with responses observed in uveal melanoma, esophagogastric adenocarcinoma, chordoma, and mucoepidermoid carcinoma.
• RLYB and Avenzo Therapeutics agreed to merge and secure financing to continue developing Avenzo’s drug programs. Avenzo will become a subsidiary of Rallybio, and the combined company will operate under Avenzo’s name. It will trade on Nasdaq with the ticker AVZO.
• RVMD said following a 500-patient late-stage trial, experimental pancreatic cancer drug daraxonrasib doubled survival, compared with chemotherapy, and improved symptoms enough that some patients could resume activities they had previously abandoned. In patients with advanced pancreatic cancer who had failed one round of chemotherapy, the once-daily pill cut the risk of death by 60% vs. standard chemo.
• SMMT partner Akeso (AKESF) presented late-breaking Ph3 HARMONi-6 overall survival data during the plenary session, where ivonescimab + chemotherapy demonstrated a statistically significant and clinically meaningful 27.9 month benefit vs. 23.7 months for Tevimbra (anti-PD-1) + chemotherapy in frontline squamous non-small cell lung cancer, with a hazard ratio (HR) of 0.66.
• VYGR announced that the FDA has cleared its investigational new drug, or IND, application for VY1706, the company’s investigational gene therapy targeting intracellular and extracellular tau for Alzheimer’s disease.

• Medical Research: GRAL shares tumbled after announced performance and safety results from the analysis of the full 35,878 cohort of its registrational Pathfinder 2 study are being presented during an oral session at the 2026 American Society of Clinical Oncology, ASCO, Annual Meeting.

• Space sector: BKSY downgraded to Hold from Buy with a $50 price target at Jefferies noting shares up 159% year-to-date and while general excitement around space has driven the stock price move, the firm views the event as unrelated to BlackSky’s core market and sees limited upside from here. Jefferies also downgraded RDW to Hold from Buy (tgt up to $24 from $13) noting shares up 223% year-to-date.

• PC & Hardware Sector strong DELL, HPQ, others after NVDA debuted its RTX Spark superchip for Windows laptops. The processor, which includes a Blackwell GPU and Grace CPU, will power laptops from manufacturers including Acer, DELL, HPQ and MSFT when it lands this fall. DELL was upgraded at Morgan Stanley while Goldman Sachs raised its price tgt to $5000 following last week‘s earnings noting demand continues to exceed supply (DRAM, NAND, and CPUs are the primary constraints), and the company expects to exit the year with meaningful backlog, setting up for continued growth in F2028. IBM shares jumped after a video of President rump praising the company’s CEO and discussing the stock at a December event recirculated on social media over the weekend.
• EDA Sector: CDNS announced the industry’s first fully autonomous virtual agentic AI design engineer, extending the ChipStack(TM) AI Super-Agent to Level 5 autonomy. Built on Cadence’s AI-driven electronic design automation (EDA) portfolio with NVIDIA Nemotron models, and secured by NVIDIA OpenShell runtime, the new agentic capabilities enable customers to run dynamic simulations in automated workflows.
• Neocloud sector strong with big jumps for CRWV, NBIS. Note NVDA CEO Huang praised NBIS during his keynote today saying Nebius is positioning itself as a cloud utility for the agentic AI era built to deliver inference and AI compute efficiently at scale. Note also this weekend, Japan’s SoftBank Group announced it will invest €45 billion over the next five years ​in a push to build up artificial intelligence infrastructure ‌in France. SoftBank said the investment, described as the biggest of its kind so far in Europe, would be made ​in the northern Hauts-de-France region and deliver 3.1 GW of ​capacity.
• Reuters reported Europe plans to propose strict criteria for cloud computing services in highly critical state tenders that could exclude AMZN, MSFT and GOOGL from such projects. The proposal is part of the European Commission’s Cloud and AI Development Act, which EU tech chief Henna Virkkunen will announce Wednesday as part of a package of measures aimed at reducing Europe’s dependence on U.S. tech/promoting Euro businesses.

• Software sector: Shares of software companies surge as investors scoop up beaten down stocks, with broader tech sector rally buoying gains and the IGV now back to flat on the year given its recent run. Shares of NOW, CRM, TEAM, MNDY, HUBS, MDB among some of the big movers today. MSFT rallied as NVDA unveils new chip in partnership with co; Nvidia CEO Jensen Huang dismissed concerns that AI would reduce demand for software engineers. Note the S&P 500 software sector index logged its strongest monthly gain since Oct 2002 in May and ended last week at its highest level since late January after strong results from likes of SNOW.

• Memory sector (MU, SNDK), KeyBanc noted inSpectrum released its memory contract pricing for the month of May. 8Gb DDR4 DRAM pricing was flat M/m and +22.1% q/q, and 8Gb DDR5 DRAM pricing was +0.7% M/m and +50.8% q/q, while 512Gb NAND pricing was flat M/m and +36.7% q/q. KEYB views the May pricing results as positive for DRAM and NAND.