Stock Market Impact: US stock futures were mixed; Dow futures fell 102 points (‑0.25%), S&P 500 futures rose 20 points (+0.3%), Nasdaq‑100 futures rose 193 points (+0.7%). The S&P 500 index closed down 2.64%, its worst day of the year, ending a nine‑week streak of gains. Nasdaq Composite fell 4.18% and the Philadelphia semiconductor index (SOX) dropped 10.26% after Broadcom reported weaker‑than‑expected quarterly results, dampening AI‑related enthusiasm.
Listed Companies and Sectors: Apple Inc. is set to begin its Worldwide Developers Conference (WWDC) on Monday, with expectations of AI‑focused announcements such as an enhanced Siri experience, Gemini‑enabled Apple AI, a potential Siri app, and broader developer tools. Broadcom Inc. is highlighted for its disappointing quarterly returns, contributing to the semiconductor sector weakness; Avago (ticker AVGO) shares fell 7.92%.
Investment Flows: The article does not cite specific FDI/FPI measures, but heightened geopolitical risk and rising oil prices may shift capital toward energy‑related assets and away from riskier equities.
Interest Rates, Inflation, and Liquidity: A robust May non‑farm payrolls report and a strong jobs market have reinforced expectations that the Federal Reserve could raise rates later in the year to counter inflationary pressures linked to the Iran‑Israel conflict. The upcoming May CPI report (Wednesday) and the Fed’s policy meeting the following week—Kevin Warsh’s first as Chair—are seen as critical for rate‑setting decisions. Higher oil prices are expected to add to inflation, potentially prompting further rate hikes.
Fiscal or Monetary Policy: No new fiscal measures are mentioned; the focus is on anticipated monetary policy actions by the Fed, with market participants expecting a tightening stance.
