Stock Market Impact: S&P 500 fell 0.9% to 7,514.86, Nasdaq dropped 1.7% to 26,387.61, Dow slipped 0.2% to 51,480.79; tech sector weakness after Broadcom earnings miss; strong May nonfarm payrolls lifted Treasury yields and heightened hawkish sentiment; Middle‑East tensions dampened sentiment.
Listed Companies and Sectors: Broadcom earnings disappointment dragged down peers Intel, Micron, AMD; Lululemon Athletica cut full‑year guidance, shares fell >7%; DocuSign fell >5% after quarterly results; Merlin rose after successful C‑130J autonomy program review with U.S. government; ServiceTitan climbed on better‑than‑expected first‑quarter revenue.
Investment Flows: Strong jobs data raised expectations of Federal Reserve rate hikes, potentially curbing foreign portfolio inflows; oil market concerns from Strait of Hormuz closure may affect commodity‑linked investment.
Interest Rates, Inflation, and Liquidity: Treasury yields rose; CME FedWatch Tool shows rates likely steady for the remainder of 2026 with a possible hike in 2027; inflation pressures noted due to potential oil shock.
Fiscal or Monetary Policy: No new fiscal measures; Fed policymakers, including new Chair Kevin Warsh, face pressure to balance inflation control with maximum employment.
