Weekly Market Recap - Friday, 5-Jun

Why It Matters

Stronger labor data and hawkish Fed rhetoric pushed yields higher, raising borrowing costs and tilting investor flows from growth into defensives and financials; combined with concentrated tech leadership, this raises index‑risk and heightens sensitivity to upcoming IPO supply and geopolitical shocks.

Summary

U.S. equities slipped this week, with the S&P 500 ending a nine-week win streak as mega-cap tech, semiconductors and memory stocks—led by Broadcom—pulled markets lower while equal‑weight S&P fell only modestly. Defensive sectors, financials and healthcare outperformed, and energy rallied amid Middle East uncertainty; Bitcoin and precious metals posted significant weekly declines. Treasuries weakened and the yield curve flattened after a stronger‑than‑expected May jobs report and upward revisions to prior months, while ISM data surprised to the upside and the Beige Book signaled persistent inflationary pressure. Geopolitical tensions in the Middle East produced limited diplomatic progress and continued strikes, and market attention turned to a looming surge in equity supply including a roughly $75 billion SpaceX IPO next week.

Original Description

Major US equity indices were down this week. The big story this week was the dip in semis/memory and select AI names, accompanied by a rotation into defensives, financials, and healthcare. There was no real movement on the US-Iran conflict despite last week's hopes that a memorandum of understanding was close that could lead to a 60-day ceasefire and further negotiation on sticking points.