Morning Bid: Chip chill, jobs heat and war

• The SOX semiconductor index crashed 10% with Broadcom down 20% over two days, while the tech-heavy Nasdaq fell approximately 4% heading into the weekend
• U.S. May payrolls surged to 172,000 jobs added, more than double forecasts, pushing market expectations of a Fed rate hike to nearly 80% by year-end
• Iran-Israel military exchanges over the weekend drove crude oil prices higher and increased rate-hike angst, while President Trump urged against rate increases and called for cuts instead

Market Summary: Morning Bid - June 8, 2026

Key Market Developments:

Global markets faced significant pressure as semiconductor stocks plummeted and stronger-than-expected U.S. jobs data fueled Federal Reserve rate hike concerns. The SOX semiconductor index crashed 10%, with Broadcom falling 20% over two days. The tech-heavy Nasdaq dropped approximately 4% heading into the weekend, ending the S&P 500's nine-week winning streak.

Employment Data:

U.S. nonfarm payrolls surged by 172,000 jobs in May—more than double forecasts—with March and April revised upward by 93,000 jobs. Unemployment held steady at 4.3% for the third consecutive month. Three-month average job gains reached 188,000, nearly triple the comparable 2025 figure. Analysts estimate only 0-50,000 monthly jobs are needed to match working-age population growth, raising overheating concerns.

Market Implications:

• Markets now price in an 80% probability of a Fed rate hike by year-end and nearly two hikes within 12 months
• Treasury yields rising amid rate hike expectations
• Dollar strengthening against the euro despite anticipated ECB rate cut Thursday

Geopolitical Tensions:

Iran-Israel military exchanges over the weekend—the first since April—pushed crude oil prices higher, further complicating inflation outlook. President Trump urged against rate increases and called for cuts instead.

Corporate Activity:

Alphabet announced $80 billion in new equity sales; Meta reportedly considering similar financing. SpaceX mega-IPO expected Friday. Concerns mount over equity dilution from AI infrastructure investment by hyperscalers, though analysts believe record buyback pace may offset IPO wave impacts.

Asian and European markets opened lower, with Europe's STOXX 600 hitting two-week lows.