Stocks are stabilizing in the early going, with the tech sector steadying after a rough patch of trading. Crude oil is modestly higher, while gold and silver are off a bit. Treasuries and the dollar are also losing some ground.
Friday was a rout. “Everything” sold off after a much stronger-than-expected May jobs report raised fears of tighter Federal Reserve policy. The year’s hottest stocks – including semiconductor and AI names – got hit particularly hard. The iShares Semiconductor ETF (SOXX), for instance, tanked 10.4%, while the Global X Artificial Intelligence & Technology ETF (AIQ) slid 8.1%.
SOXX, AIQ, NVDA, AAPL (5-Day % Change)
Data by YCharts
That said, Nvidia Corp. (NVDA) CEO Jensen Huang called the pullback a buying opportunity during a trip in South Korea – adding that “you should be very happy because now you can buy at a discount.” Excitement is building about Apple Inc.’s (AAPL) Worldwide Developers Conference this week and the AI-fueled version of Siri the company is expected to reveal. Marvell Technology Inc. (MRVL) is also rebounding on news the red-hot chipmaker will get added to the S&P 500 Index (^SPX).
Plus, a weekend flareup of attacks and counterattacks in Lebanon, Israel, and Iran may be dying down again. All of that sets Wall Street up for a better start to the week...with crude oil prices coming off their early morning highs. But the biggest potential test of market sentiment and risk-taking appetite will be the SpaceX Initial Public Offering (IPO). Shares are expected to price June 11 and begin trading on June 12 under the ticker symbol SPCX.
