Morning Bid: Missing the mark

• Broadcom shares plunged 12% on Thursday after missing revenue expectations, ending the S&P 500's nine-session winning streak and highlighting how high the bar has risen for tech companies to impress investors
• Oil remained volatile and rangebound below $100/barrel as Iran-U.S. peace talks stalled, with U.S. gasoline stockpiles falling at near-record pace while some ships reportedly move crude 'under the radar' through the Strait of Hormuz
• Mixed employment signals create challenges for Fed Chair Kevin Warsh: job openings dropped the most in five years while private payrolls beat forecasts, but jobless claims jumped 6.1% and May layoffs rose 11% with 40% attributed to AI

Market Summary: Missing the Mark

Key Market Developments

Markets stumbled this week despite initial optimism around potential resolution to the Iran conflict and continued AI momentum. The S&P 500's nine-session winning streak ended after Broadcom's disappointing earnings, causing the chipmaker to plunge 12% on Thursday and wiping out approximately $300 billion in market value, dragging down the Nasdaq.

Tech Sector Highlights

Despite Broadcom's setback, AI enthusiasm remains strong:

• Nvidia unveiled new AI-integrated PC chips Monday
• Anthropic announced IPO plans, joining SpaceX's record $75 billion offering
• Alphabet buyback announcement saw Berkshire Hathaway acquire $10 billion
• Marvell Technology surged 25%+ after Nvidia CEO suggested trillion-dollar potential
• Microsoft introduced AI-designed quantum computing chip, targeting commercial viability by 2029

Energy Markets & Geopolitics

Oil volatility continued tied to U.S.-Iran peace negotiations. Brent crude remained below $100/barrel despite:

• Iran conflict disrupting 10 million barrels/day from Strait of Hormuz
• Israel-Lebanon ceasefire collapsing
• U.S. gasoline stockpiles falling at near-record pace
• China's crude imports hitting 10-year lows in May

Ships increasingly operating "under the radar" to bypass Hormuz blockades, signaling potential long-term market opacity.

Employment & Fed Implications

Mixed U.S. jobs data presents challenges for new Fed Chair Kevin Warsh ahead of June meeting:

• Job openings declined most in five years (April)
• Private payrolls added 122,000 (May, above forecast)
• Jobless claims rose 6.1%
• May nonfarm payrolls forecast: 85,000 net increase

Currency Watch

The yen breached 160-per-dollar, testing intervention levels after authorities spent $73 billion supporting the currency weeks earlier, raising questions about strategy effectiveness.