Market Update
U.S. Market Rally Struggled In Tenth Week as AI Momentum Faltered
Barry Adams
05 Jun, 2026
New York City
Global markets retreated and showed heightened volatility as tech-heavy indices adjust to cooling AI momentum.
Renewed hostilities in the Middle East dampened the prospect of a temporary ceasefire in the Middle East.
At the start of the week, world market averages extended gains as investors reacted to positive earnings and stayed optimistic about the prospects for AI infrastructure investing and technologies.
However, as the week progressed, the market mood soured amid renewed hostilities in the Middle East and concerns over the AI trade.
Wall Street indexes traded down after a volatile week amid concerns over AI-linked stock valuations following Broadcom's weaker-than-expected revenue outlook for the current quarter.
The U.S. economy added about 172,000 net new jobs in May, jobless rate held at 4.3%, and the annual wage growth eased to 3.4% from 3.6% in the previous month, according to the latest update released by the U.S. Bureau of Labor Statistics.
The change in total nonfarm payroll employment for March was revised up by 29,000, from 185,000 to 214,000, and the change for April was revised up by 64,000, from 115,000 to 179,000.
With these revisions, employment in March and April combined is 93,000 higher than previously reported, the BLS report noted.
European markets traded mixed amid lingering uncertainty in the Middle East, and investors digested a string of economic data confirming resilient conditions despite elevated inflationary pressures.
Japan's Nikkei 225 Stock Average closed unchanged after a week of trading, as concerns mounted over the AI trade following Broadcom's estimate of a weaker-than-expected sales outlook.
For the week, the Nikkei 225 Stock Average advanced 0.1%, and the TOPIX increased 0.2%, as investors reviewed a fresh batch of economic data released this week.
In May, the Nikkei 225 Stock Average gained 11.3%, and the TOPIX increased 6.8% after investors bid up AI- and semiconductor-related stocks for the second consecutive month.
Across exchanges in China, Hong Kong and Shanghai indexes rebounded on Friday and traded down at the end of a week, despite a rebound in enthusiasm over AI trade.
After a week of choppy trading, the Hang Seng index decreased 1.2%, and the CSI 300 Index edged down 1.7%.
Despite the recent run-up in China-based stocks, investors have been cautious about increasing exposure to Chinese companies amid low margins, intense competition, and poor visibility of future profits.
India's indexes closed down 0.8%at the end of a volatile week, and the Reserve Bank of India left its benchmark rates unchanged at 5.25% for the third consecutive meeting in June.
The central bank also lowered its fiscal year economic growth estimate to 6.6% from the previous estimate of 6.9% and revised higher its inflation estimate to 5.1% from 4.6%, mainly driven by the higher costs of imported energy products.
In May, benchmark indexes declined 3.5% as foreign investors continued to lower exposure to emerging markets amid higher yields on the U.S. Treasury notes.
Since the start of the year, the sell-off in Indian securities has intensified, particularly in stocks, according to India's NSDL.
Foreign investors sold about $28 billion in 2026 as of the end of the first week of June, compared to about $18 billion in the comparable period in 2025, reversing the inflow of $20.7 billion in 2023.
U.S. Movers
Broadcom dropped 13% to $418.91 after the advanced chipmaker's outlook fell short of some investors.
Revenue in the fiscal second quarter ending on May 3 increased 48% to $22.2 billion from $15.0 billion, net income soared 88% to $9.3 billion from $5.0 billion, and diluted earnings per share rose 85% to $1.91 from $1.03 a year ago.
The company's Board of Directors declared a quarterly cash dividend of 65 cents payable on June 30 to shareholders on record on June 22.
The company guided fiscal third-quarter revenue of $29.4 billion and an adjusted operating margin of 68% of protected revenue.
U.S. Market Rally Struggled In Tenth Week as AI Momentum Faltered
Barry Adams
05 Jun, 2026
New York City
Global markets retreated and showed heightened volatility as tech-heavy indices adjust to cooling AI momentum.
Renewed hostilities in the Middle East dampened the prospect of a temporary ceasefire in the Middle East.
At the start of the week, world market averages extended gains as investors reacted to positive earnings and stayed optimistic about the prospects for AI infrastructure investing and technologies.
However, as the week progressed, the market mood soured amid renewed hostilities in the Middle East and concerns over the AI trade.
Wall Street indexes traded down after a volatile week amid concerns over AI-linked stock valuations following Broadcom's weaker-than-expected revenue outlook for the current quarter.
The U.S. economy added about 85,000 net new jobs in May, jobless rate held at 4.3%, and the annual wage growth eased to 3.4% from 3.6% in the previous month, according to the latest update released by the U.S. Bureau of Labor Statistics.
European markets traded mixed amid lingering uncertainty in the Middle East, and investors digested a string of economic data confirming resilient conditions despite elevated inflationary pressures.
Japan's Nikkei 225 Stock Average closed unchanged after a week of trading, as concerns mounted over the AI trade following Broadcom's estimate of a weaker-than-expected sales outlook.
For the week, the Nikkei 225 Stock Average advanced 0.1%, and the TOPIX increased 0.2%, as investors reviewed a fresh batch of economic data released this week.
In May, the Nikkei 225 Stock Average gained 11.3%, and the TOPIX increased 6.8% after investors bid up AI- and semiconductor-related stocks for the second consecutive month.
Across exchanges in China, Hong Kong and Shanghai indexes rebounded on Friday and traded down at the end of a week, despite a rebound in enthusiasm over AI trade.
After a week of choppy trading, the Hang Seng index decreased 1.2%, and the CSI 300 Index edged down 1.7%.
Despite the recent run-up in China-based stocks, investors have been cautious about increasing exposure to Chinese companies amid low margins, intense competition, and poor visibility of future profits.
India's indexes closed down 0.8%at the end of a volatile week, and the Reserve Bank of India left its benchmark rates unchanged at 5.25% for the third consecutive meeting in June.
The central bank also lowered its fiscal year economic growth estimate to 6.6% from the previous estimate of 6.9% and revised higher its inflation estimate to 5.1% from 4.6%, mainly driven by the higher costs of imported energy products.
In May, benchmark indexes declined 3.5% as foreign investors continued to lower exposure to emerging markets amid higher yields on the U.S. Treasury notes.
Since the start of the year, the sell-off in Indian securities has intensified, particularly in stocks, according to India's NSDL.
Foreign investors sold about $28 billion in 2026 as of the end of the first week of June, compared to about $18 billion in the comparable period in 2025, reversing the inflow of $20.7 billion in 2023.
U.S. Movers
Broadcom dropped 13% to $418.91 after the advanced chipmaker's outlook fell short of some investors.
Revenue in the fiscal second quarter ending on May 3 increased 48% to $22.2 billion from $15.0 billion, net income soared 88% to $9.3 billion from $5.0 billion, and diluted earnings per share rose 85% to $1.91 from $1.03 a year ago.
The company's Board of Directors declared a quarterly cash dividend of 65 cents payable on June 30 to shareholders on record on June 22.
The company guided fiscal third-quarter revenue of $29.4 billion and an adjusted operating margin of 68% of protected revenue.
Japan's Real Wage Growth Streak Extended to Fourth Month In April, Nikkei 225 Declined 1%
Akira Ito
05 Jun, 2026
Tokyo
Japan's benchmark indexes extended losses of the previous session in Friday's trading as technology and AI-related stocks continued to face selling pressure.
The Nikkei 225 Stock Average dropped 1.6%, and the broader TOPIX eased 0.1%, and the yen hovered at 159.95 against the U.S. dollar.
For the week, the Nikkei 225 Stock Average edged up 0.2%, and the TOPIX advanced 0.6%.
Investors remained cautious amid the fragile ceasefire between the U.S. and Iran, and renewed escalation of violence in the Middle East dented hopes of immediate reopening of the Strait of Hormuz.
On the economic front, Japan's real wages rose for the fourth consecutive month in April, supporting the case for the Bank of Japan to raise rates later in the month.
Real Wages Rise for the Fourth Straight Month In April
The average monthly cash earnings, or nominal wages, per worker increased 3.5% from a year ago in April to 312,425 yen, or $1,900, rising above 3% for the first time in three months in 34 years.
The monthly update was released by the Ministry of Health, Labor, and Welfare.
After adjusting for an inflation index of 1.5%, real wages rose 1.9% from a year ago, marking the rise for the fourth consecutive month and the longest positive streak since a seven-month string starting in February 2021.
The annual rise accelerated from a 1.4% increase in March, according to the government data.
Households of two or more workers spent an average of 328,969 yen, the Ministry of Internal Affairs and Communications said in a separate report.
The spending on food and beverages dropped 0.6%, while expenditure on apparel and shoes plunged 10.9% from a year ago, respectively.
However, transportation and communication sector spending rose 7.5%, driven by higher demand for passenger vehicles because of the abolition of a tax at the end of March.
Japan Indexes and Stocks
The Nikkei 225 Stock Average dropped 1.6% to 66,407.65, and the broader TOPIX declined 0.1% to 3,947.42.
Semiconductor equipment makers led the decliners in Friday's trading.
SoftBank Group, Kioxa Holding, Tokyo Electron, Advantest Corp., and Murata Manufacturing dropped between 1% and 4%.
Japan's Real Wage Growth Streak Extended to Fourth Month In April, Nikkei 225 Declined 1%
Akira Ito
05 Jun, 2026
Tokyo
Japan's benchmark indexes extended losses of the previous session in Friday's trading as technology and AI-related stocks continued to face selling pressure.
The Nikkei 225 Stock Average dropped 1.6%, and the broader TOPIX eased 0.1%, and the yen hovered at 159.95 against the U.S. dollar.
For the week, the Nikkei 225 Stock Average edged up 0.2%, and the TOPIX advanced 0.6%.
Investors remained cautious amid the fragile ceasefire between the U.S. and Iran, and renewed escalation of violence in the Middle East dented hopes of immediate reopening of the Strait of Hormuz.
On the economic front, Japan's real wages rose for the fourth consecutive month in April, supporting the case for the Bank of Japan to raise rates later in the month.
Real Wages Rise for the Fourth Straight Month In April
The average monthly cash earnings, or nominal wages, per worker increased 3.5% from a year ago in April to 312,425 yen, or $1,900, rising above 3% for the first time in three months in 34 years.
The monthly update was released by the Ministry of Health, Labor, and Welfare.
After adjusting for an inflation index of 1.5%, real wages rose 1.9% from a year ago, marking the rise for the fourth consecutive month and the longest positive streak since a seven-month string starting in February 2021.
The annual rise accelerated from a 1.4% increase in March, according to the government data.
Households of two or more workers spent an average of 328,969 yen, the Ministry of Internal Affairs and Communications said in a separate report.
The spending on food and beverages dropped 0.6%, while expenditure on apparel and shoes plunged 10.9% from a year ago, respectively.
However, transportation and communication sector spending rose 7.5%, driven by higher demand for passenger vehicles because of the abolition of a tax at the end of March.
Japan Indexes and Stocks
The Nikkei 225 Stock Average dropped 1.6% to 66,407.65, and the broader TOPIX declined 0.1% to 3,947.42.
Semiconductor equipment makers led the decliners in Friday's trading.
SoftBank Group, Kioxa Holding, Tokyo Electron, Advantest Corp., and Murata Manufacturing dropped between 1% and 4%.
Renewed Tensions in the Middle East Dragged Down China's Indexes
Li Chen
05 Jun, 2026
Hong Kong
Stocks in China and Hong Kong traded down in Friday's trading as investors reviewed volatile conditions in the Middle East.
The Hang Seng index decreased 0.9%, and the mainland-focused CSI 300 Index edged down 0.1% as renewed tensions in the Middle East weighed on the market sentiment.
The latest escalation came despite the U.S. president making unsubstantiated claims about the progress in ceasefire negotiations, even as Iran said talks had stalled.
The U.S. military installations in Kuwait, Bahrain, and the UAE faced renewed Iranian attacks following a barrage of Israeli attacks in southern Lebanon.
China Indexes and Stocks
The Hang Seng Index decreased 0.9% to 25,034.02, and the mainland-focused CSI 300 Index declined 0.1% to 25,034.02.
For the week, the Hang Seng decreased 0.5%, and the CSI 300 index was nearly unchanged.
Chipmakers advanced in Shanghai, Shenzhen, and Hong Kong amid reports that AI startup DeekSeek is seeking 50 billion yuan, or $7.5 billion, in its latest funding round.
GigaDevice Semiconductor, Hua Hong Semiconductor, and SMIC advanced between 3% and 8%.
Electric vehicle makers faced a renewed sell-off amid worries that intense competition could depress already thin operating margins.
BYD, Xpeng, CATL, and Xiaomi dropped between 1% and 4%.
Renewed Tensions in the Middle East Dragged Down China
Li Chen
05 Jun, 2026
Hong Kong
Stocks in China and Hong Kong traded down in Friday's trading as investors reviewed volatile conditions in the Middle East.
The Hang Seng index decreased 0.9%, and the mainland-focused CSI 300 Index edged down 0.1% as renewed tensions in the Middle East weighed on the market sentiment.
The latest escalation came despite the U.S. president making unsubstantiated claims about the progress in ceasefire negotiations, even as Iran said talks had stalled.
The U.S. military installations in Kuwait, Bahrain, and the UAE faced renewed Iranian attacks following a barrage of Israeli attacks in southern Lebanon.
China Indexes and Stocks
The Hang Seng Index decreased 0.9% to 25,034.02, and the mainland-focused CSI 300 Index declined 0.1% to 25,034.02.
For the week, the Hang Seng decreased 0.5%, and the CSI 300 index was nearly unchanged.
Chipmakers advanced in Shanghai, Shenzhen, and Hong Kong amid reports that AI startup DeekSeek is seeking 50 billion yuan, or $7.5 billion, in its latest funding round.
GigaDevice Semiconductor, Hua Hong Semiconductor, and SMIC advanced between 3% and 8%.
Electric vehicle makers faced a renewed sell-off amid worries that intense competition could depress already thin operating margins.
BYD, Xpeng, CATL, and Xiaomi dropped between 1% and 4%.
U.S. Movers: GitLab, Macy's, Palo Alto Network, Victoria's Secret, Ulta Beauty
Scott Peters
03 Jun, 2026
New York City
Palo Alto Networks decreased 3.4% to $287.0, and the cybersecurity company posted strong financial results in the fiscal third quarter.
Revenue increased 31% to $3.0 billion from $2.3 billion, net income swung to a loss of $177 million from $262 million, and diluted earnings per share were a loss of 22 cents compared to 37 cents a year ago.
The company revised higher its revenue guidance for the current quarter and for the fiscal year.
The company lifted its fiscal second quarter revenue range to between $3.345 billion and $3.355 billion, representing an increase of 32% from a year ago, and diluted earnings per share to fall between 96 cents and 98 cents.
For the fiscal year 2026, the company estimated revenue to range between $11.415 billion and $11.425 billion, representing an increase of 24% from a year ago, and adjusted diluted earnings per share to range between $3.77 and $3.79.
GitLab dropped 3% to $30.87 after the company announced its plan to reduce its full-time workforce by 14%, or about 36 staff, and exit 22 countries.
The company estimated a pre-tax charge between $30 million and $35 million for its restructuring plan.
Total revenue in the fiscal first quarter ending in April rose 23% to $264.2 million from $214.5 million, net loss attributable to shareholders shrank to $5 million from $35.9 million, and diluted loss per share decreased to 3 cents from 22 cents a year ago.
The company guided fiscal second quarter revenue to range between $272 million and $274 million, and fiscal 2027 revenue to range between $1.112 million and $118 million.
The software platform developer estimated adjusted earnings per share in the fiscal second quarter to range between 17 and 18 cents and fiscal 2027 to range between 79 cents and 82 cents.
Ulta Beauty increased 1% to $500.26 after the company posted its quarterly results and revised higher its full-year earnings estimate.
Revenue in the fiscal first quarter ending on May 2 increased 11.1% to $3.2 billion from $2.9 billion, net income soared 11.4% to $340.5 million from $305.1 million, and diluted earnings per share advanced 15% to $7.74 from $6.70 a year ago.
Net sales increased in the quarter, primarily due to increased comparable sales, the acquisition of Space NK, and sales from new stores.
Comparable sales rose 5.3%, driven by a 3.7% increase in average ticket and a 1.6% increase in transactions.
The company reiterated its fiscal year net sales to increase between 6% and 7%, comparable store sales to rise between 2.5% and 3.5%, and capital expenditures between $400 million and $450 million.
The cosmetic retailer lifted its annual diluted earnings per share range to between $28.36 and $28.80 from the previous range between $28.05 and $28.55.
Victoria's Secret soared 47% to $80.06 after posting strong quarterly results and lifting its annual sales outlook.
Revenue in the fiscal first quarter ending on May 2 rose 15% to $1.6 billion from $1.4 billion, net income attributable to shareholders swung to $47.7 million from a loss of $1.7 million, and diluted earnings per share increased to a profit of 56 cents from a loss of 2 cents a year ago.
The company raised its net sales forecast for the fiscal second quarter to between $1.59 billion and $1.62 billion, compared to $1.46 billion in the quarter a year ago.
The specialty retailer of intimate apparel raised its fiscal full-year 2026 revenue estimate to between $7.03 billion and $7.13 billion, an increase compared to the previous estimated range between $6.85 billion and $6.95 billion and compared to $6.56 billion in fiscal 2025.
U.S. Movers: GitLab, Macy's, Palo Alto Network, Victoria's Secret, Ulta Beauty
Scott Peters
03 Jun, 2026
New York City
Palo Alto Networks decreased 3.4% to $287.0, and the cybersecurity company posted strong financial results in the fiscal third quarter.
Revenue increased 31% to $3.0 billion from $2.3 billion, net income swung to a loss of $177 million from $262 million, and diluted earnings per share were a loss of 22 cents compared to 37 cents a year ago.
The company revised higher its revenue guidance for the current quarter and for the fiscal year.
The company lifted its fiscal second quarter revenue range to between $3.345 billion and $3.355 billion, representing an increase of 32% from a year ago, and diluted earnings per share to fall between 96 cents and 98 cents.
For the fiscal year 2026, the company estimated revenue to range between $11.415 billion and $11.425 billion, representing an increase of 24% from a year ago, and adjusted diluted earnings per share to range between $3.77 and $3.79.
GitLab dropped 3% to $30.87 after the company announced its plan to reduce its full-time workforce by 14%, or about 36 staff, and exit 22 countries.
The company estimated a pre-tax charge between $30 million and $35 million for its restructuring plan.
Total revenue in the fiscal first quarter ending in April rose 23% to $264.2 million from $214.5 million, net loss attributable to shareholders shrank to $5 million from $35.9 million, and diluted loss per share decreased to 3 cents from 22 cents a year ago.
The company guided fiscal second quarter revenue to range between $272 million and $274 million, and fiscal 2027 revenue to range between $1.112 million and $118 million.
The software platform developer estimated adjusted earnings per share in the fiscal second quarter to range between 17 and 18 cents and fiscal 2027 to range between 79 cents and 82 cents.
Ulta Beauty increased 1% to $500.26 after the company posted its quarterly results and revised higher its full-year earnings estimate.
Revenue in the fiscal first quarter ending on May 2 increased 11.1% to $3.2 billion from $2.9 billion, net income soared 11.4% to $340.5 million from $305.1 million, and diluted earnings per share advanced 15% to $7.74 from $6.70 a year ago.
Net sales increased in the quarter, primarily due to increased comparable sales, the acquisition of Space NK, and sales from new stores.
Comparable sales rose 5.3%, driven by a 3.7% increase in average ticket and a 1.6% increase in transactions.
The company reiterated its fiscal year net sales to increase between 6% and 7%, comparable store sales to rise between 2.5% and 3.5%, and capital expenditures between $400 million and $450 million.
The cosmetic retailer lifted its annual diluted earnings per share range to between $28.36 and $28.80 from the previous range between $28.05 and $28.55.
Victoria's Secret soared 47% to $80.06 after posting strong quarterly results and lifting its annual sales outlook.
Revenue in the fiscal first quarter ending on May 2 rose 15% to $1.6 billion from $1.4 billion, net income attributable to shareholders swung to $47.7 million from a loss of $1.7 million, and diluted earnings per share increased to a profit of 56 cents from a loss of 2 cents a year ago.
The company raised its net sales forecast for the fiscal second quarter to between $1.59 billion and $1.62 billion, compared to $1.46 billion in the quarter a year ago.
The specialty retailer of intimate apparel raised its fiscal full-year 2026 revenue estimate to between $7.03 billion and $7.13 billion, an increase compared to the previous estimated range between $6.85 billion and $6.95 billion and compared to $6.56 billion in fiscal 2025.
AI Investment Cycle Optimism Powers U.S. Rally to Tenth Week
Barry Adams
03 Jun, 2026
New York City
Stocks in New York lacked direction in early trading, and major averages hit fresh record highs amid optimism over the AI investment cycle.
The S&P 500 index decreased 0.1%, and the tech-heavy Nasdaq Composite edged down 0.03% as investors continued to overlook escalating tensions in the Middle East.
The S&P 500 index extended gains for the tenth week in a row as investors poured fresh capital into the AI ecosystem-linked stocks.
Broad market averages also extended gains as investors reacted to positive earnings and stayed optimistic about the prospects for AI infrastructure investing and technologies.
Crude oil prices rose for the third consecutive week amid reports that Kuwait faced new air attacks from Iran, as the embattled nations conducted retaliatory strikes following Israel's attack targeting locations in Southern Lebanon.
The prospect of resumption of normal commercial shipping through the Strait of Hormuz remained dim after the U.S., Iran, and Israel ramped up air strikes in the region.
West Texas crude oil prices rose 2.7% to $96.30 a barrel, and prices advanced for the third session in a row amid worries of tightening supply conditions.
U.S. Movers
Palo Alto Networks decreased 3.4% to $287.0, and the cybersecurity company posted strong financial results in the fiscal third quarter.
The company revised higher its revenue guidance for the current quarter and for the fiscal year.
GitLab dropped 3% to $30.87 after the company announced its plan to reduce its full-time workforce by 14%, or about 36 staff, and exit 22 countries.
The company estimated a pre-tax charge between $30 million and $35 million for its restructuring plan.
The software platform developer estimated adjusted earnings in the current quarter to range between 17 and 18 cents per share.
Ulta Beauty increased 1% to $500.26 after the company posted its quarterly results and revised higher its full-year earnings estimate.
Victoria's Secret soared 47% to $80.06 after posting strong quarterly results and lifting its annual sales outlook.
Macy's increased 3.4% to $22.41 after the department store operator reported better-than-expected fiscal first-quarter results and revised higher its annual sales outlook.
The retailer posted adjusted earnings per share of 13 cents on revenue of $4.68 billion and raised its full-year sales to fall between $21.50 and $21.75 billion.
Macy's revised its full-year earnings per share range to between $2.0 and $2.20 from the previous range between $1.90 and $2.10.
AI Investment Cycle Optimism Powers U.S. Rally to Tenth Week
Barry Adams
03 Jun, 2026
New York City
Stocks in New York lacked direction in early trading, and major averages hit fresh record highs amid optimism over the AI investment cycle.
The S&P 500 index decreased 0.1%, and the tech-heavy Nasdaq Composite edged down 0.03% as investors continued to overlook escalating tensions in the Middle East.
The S&P 500 index extended gains for the tenth week in a row as investors poured fresh capital into the AI ecosystem-linked stocks.
Broad market averages also extended gains as investors reacted to positive earnings and stayed optimistic about the prospects for AI infrastructure investing and technologies.
Crude oil prices rose for the third consecutive week amid reports that Kuwait faced new air attacks from Iran, as the embattled nations conducted retaliatory strikes following Israel's attack targeting locations in Southern Lebanon.
The prospect of resumption of normal commercial shipping through the Strait of Hormuz remained dim after the U.S., Iran, and Israel ramped up air strikes in the region.
West Texas crude oil prices rose 2.7% to $96.30 a barrel, and prices advanced for the third session in a row amid worries of tightening supply conditions.
U.S. Movers
Palo Alto Networks decreased 3.4% to $287.0, and the cybersecurity company posted strong financial results in the fiscal third quarter.
The company revised higher its revenue guidance for the current quarter and for the fiscal year.
GitLab dropped 3% to $30.87 after the company announced its plan to reduce its full-time workforce by 14%, or about 36 staff, and exit 22 countries.
The company estimated a pre-tax charge between $30 million and $35 million for its restructuring plan.
The software platform developer estimated adjusted earnings in the current quarter to range between 17 and 18 cents per share.
Ulta Beauty increased 1% to $500.26 after the company posted its quarterly results and revised higher its full-year earnings estimate.
Victoria's Secret soared 47% to $80.06 after posting strong quarterly results and lifting its annual sales outlook.