Markets Overview

The Nasdaq Composite suffered its largest point drop on record Friday, plunging over 1,121 points in a brutal selloff that erased $1.8 trillion from the S&P 500. The rout snapped a remarkable two-month sprint that Deutsche Bank Research noted had only occurred four times in the 81 years since World War II. Microsoft (MSFT) was a rare holdout among megacaps, staying flat while AI chip stocks cratered.

Fed & Economic Data

New Fed Chair Kevin Warsh faces his first major test at the upcoming FOMC meeting, with markets parsing every hint of a potential rate hike. Warsh's first 100 days will be defined by two competing pressures: inflation that remains sticky and political pressure from the White House. The U.S. jobs report looms as the next critical data point amid cooling labor market expectations.

Inverted yield curves have normalized with the front end moving lower, though debate continues whether this reflects genuine growth expectations or investors demanding higher compensation for risk. Meanwhile, a Fed note highlights "China shock 2.0" — the country's ongoing export surge differs meaningfully from the early 2000s wave.

Hot Sectors

AI stocks led Friday's carnage, with Nvidia (NVDA), Intel (INTC), and Marvell (MRVL) all plunging as the AI-fueled rally ran out of steam. The semis selloff dragged the broader IT sector lower despite Marvell earning a new spot in the S&P 500. Microsoft (MSFT) bucked the trend, holding steady as investors rotated toward perceived safety in megacap software.

Consumer staples remain under pressure, with some high-quality names down as much as 30% amid sticky input costs and a market that has rotated aggressively into technology.

Stock News

SpaceX IPO Looms Large: Elon Musk's space company set a fixed IPO price of $135, targeting a staggering $1.77 trillion valuation ahead of its June 12 debut — which would be the largest IPO in history. Some commentators warn it could be "the greatest fleecing of retail investors we've ever witnessed," while others see a power move in the fixed pricing strategy.

Anthropic IPO Heating Up: The AI startup behind Claude may be positioning for a $1 trillion IPO that could rival SpaceX for attention, with several public companies poised to benefit from the offering.

Berkshire Bets on Alphabet: Berkshire Hathaway agreed to invest $10 billion into Alphabet's (GOOG, GOOGL) AI infrastructure build-out, a signal of confidence from value investors.

Other Movers: Chipotle (CMG) rallied on a JPMorgan Chase upgrade. American Airlines (AAL) rose 1.5% to $13.50 despite route suspensions. Palantir (PLTR) slid 4.3% in another pullback. Warner Bros. Discovery (WBD) fell 2.81% to $26.24 on reports of state antitrust challenges to its Paramount deal. Quantinuum opened at $68 per share following its IPO.

Earnings Reports

Broadcom (AVGO) hit an all-time high before reporting fiscal Q2 earnings mid-week. Taiwan Semiconductor (TSM) trades near its 52-week high ahead of monthly revenue figures next week and full Q2 results in mid-July. Amgen (AMGN) is charting a recovery path amid broader biotech volatility.

Market Analysis

Bitcoin is suffering from an "attention deficit" as momentum traders have abandoned crypto for AI plays. One analyst put it bluntly: "The AI trade is sucking the blood out of crypto." XRP is down 29% year-to-date despite remaining the fifth-largest cryptocurrency by market cap.

With indexes still near highs despite Friday's selloff, the key question is whether the bull run has more room or if Deutsche Bank's historical parallels signal exhaustion. All eyes turn to the jobs report and Warsh's Fed meeting for the next directional catalyst.