This week on Weekly Market Movers, Aya covers the following:

• Markets pulled back, led by weakness in tech and AI stocks after a strong run.
• AI remained the key driver, but concerns are growing about the payoff from heavy capex spending.
• Tech company news (Alphabet, Broadcom) showed how sensitive markets are to AI expectations.
• A strong jobs report signaled economic strength — but raised inflation and rate concerns.
• Higher‑for‑longer rate expectations pressured equities.
• Oil and ongoing U.S.–Iran tensions kept inflation risks in focus.
• Investors continued watching inflation data and the SpaceX IPO as the next major catalysts.

Watch the full video:

TRANSCRIPT:

Hello and welcome to this week’s Weekly Market Movers from Wealth Enhancement. My name is Aya Yoshioka, Director and Senior Investment Strategist.

In today’s video, I will be focusing on three things. First, market performance from this past week. Second, news from both the micro and the macro level. We had micro company or company news, especially in the tech sector, that really moved markets this week. And we also had some macroeconomic data, especially the jobs report, that also moved markets on Friday.

Lastly, we’ll talk about what’s coming next with all eyes focused on the SpaceX IPO.

Alright. So let’s get started. Well, the first week of June ended with a pullback in markets. The tech-heavy Nasdaq had really led markets on the way up.

So naturally it led markets on the way down. The NASDAQ 100 was down 4.5% in the first week of June. The S&P 500 was down 2.4%, and small caps represented by the Russell 2000 were down almost 4%.

On a relative basis, stocks outside the US were actually doing pretty well. The MSCI EAFE was down only 0.5% on the week, and emerging market stocks actually bucked the trend with a gain of 0.4% in the MSCI Emerging Markets Index. This was a nice move considering the US dollar strength that we saw during the week.

Bonds were down, but just a little. The US Ag Index was down minus 0.1%, and the 10-year Treasury yield rose about 10 basis points in the week to a little over 4.5%.

Coming back to the equity markets, we had started the week really strong in the S&P 500 index, posting a record on Tuesday, fueled by the 1 theme that has really dominated equity markets over the last 3 years. You guessed it: artificial intelligence, or AI.

We started the week with NVIDIA’s CEO, Jensen Huang, at the Computex Trade Show in Taipei. And there he announced that NVIDIA would be entering the PC market for the first time with a new chip called the RTX Spark.

This will help AI agents run more efficiently directly on your laptop.

However, as the week progressed, Alphabet, or the parent company of Google, came to the market with an 80-billion-dollar equity raise.

Alphabet stated that the capital that they’re raising will be used for AI infrastructure.

Not a surprise there. However, this equity raise dilutes existing shareholders, and it also came with an announcement that Alphabet will be doing fewer share repurchases going forward.

Shares were down about 3 % on the week.

On Wednesday, we had Broadcom, the sixth-largest stock in the S&P 500, report earnings. And while earnings were pretty solid, their sales forecast disappointed investors.

Broadcom noted that its AI chip revenue would be about $16 billion, which fell short of the consensus estimate of $17 billion. And just like that, investor concern about the overall payoff from all of this AI capital spending returned , and the positive momentum that we had seen in AI stocks took a bit of a U-turn.

Broadcom ended the week down 20% from its Tuesday close.

Turning to the macro side of things, we capped the week with a jobs report on Friday that surprised all of us.

This report indicated that we added 172,000 jobs, nearly double the expectation of adding 88,000 jobs.

Hiring was led by leisure and hospitality, which added nearly seventy thousand jobs. Perhaps this was thanks to a small event known as the World Cup that’s starting on June eleventh.

The jobs report was even revised higher for prior months, and the unemployment rate held steady at 4. 3%.

This is all good news, right?

We’ve got a strong jobs report; we’ve got a strong economy, yes. However, the strong jobs report may come with higher inflation, and I think that’s the concern. Thus, traders really pushed a full price increase, or they really priced in a twenty-five-basis-point interest rate hike by year-end, and equity markets had to adjust to the outlook for higher interest rates for a lot longer.

Outside the US, a fragile truce remained in place for the US and Iran. During this week, WTI crude ended around ninety dollars a barrel.

Washington and Tehran have really failed to make any headway in terms of negotiations, and signs of continued missile strikes continue in the region. And so we’re continuing to watch what transpires here and when we will get that resolution.

Okay, so what are we watching as we enter the second week of June? Well, on the economic data front, we’ll get the May CPI report on Wednesday. And after a strong jobs report indicating that the economy remains strong, investors really don’t want to see that inflation come with it.

However, we’ve seen supply chain pressures both in the energy and in tech sectors, and economists are already projecting a month-over-month increase of 0.5% in CPI and a year-over-year increase of 4.2%.

The following day on Thursday, we’ll get the PPI, or the Producer Price Index, and economists are projecting an even higher number there, a 6.4% year-over-year increase. 

Friday will really capture the market’s attention as SpaceX makes its public debut.

As Gary detailed last week, the company is expected to IPO at a one point eight trillion dollars market value. It’s truly an exciting time in markets.

However, we do note that IPOs do tend to be historically pretty volatile, especially in that first year. Many have been cut in half from their IPO price during those first twelve months.

Additionally, from a market structure perspective, the NASDAQ and the Russell Indices changed their index inclusion rules so that SpaceX will enter their benchmarks sooner than other IPOs have entered in the past.

For example, NASDAQ indicated that SpaceX will enter its benchmark in just fifteen trading days after its IPO.

Despite this announcement, the S and P or S and P Dow Jones did not follow suit.

Thus, the earliest we’ll see SpaceX get included in the S and P five hundred Index will be twelve months from now, in June of 2027.

That’s all I have for this week. Thank you so much for watching, and we’ll see you at next week’s Weekly Market Movers from Wealth Enhancement.

2026-12709