WS #9080

The dominant narrative remains a broad risk-off move driven by a stronger-than-expected May jobs report (172K vs consensus), which has eroded confidence in a Fed rate cut and pushed Treasury yields higher. This has triggered a sharp tech selloff, with the Nasdaq down over 2.5% and the S&P 500 falling ~1.5%, ending a nine-week winning streak. Semiconductors are particularly hard hit, with Intel down 8% and Broadcom down 20% on the week after disappointing guidance. The selloff is compounded by a crypto crash, with Bitcoin tumbling below $60,000 for the first time since October 2024 and Ethereum hitting its lowest since April 2025, triggering $1.33B in liquidations. However, there are notable counter-signals: Apple (AAPL) is flat on the day, holding up remarkably well against the Nasdaq's 3% decline, suggesting the selloff may not be indiscriminate. Jim Cramer is buying the dip in Intel, and the broader cooling is framed as a buying opportunity in AI chips. Geopolitical risks are elevated but not escalating sharply: an IAEA-brokered ceasefire near Zaporizhzhia nuclear plant saw a serious incident but both sides remain committed to the truce. Iran-related tensions persist but with no new escalation. The US Senate passed a $70B ICE funding bill, likely to pass the House. Overall, the narrative is one of rate-hike fear dominating tech and crypto, with defensive rotation into healthcare (JNJ, LLY, CAH) and selective dip-buying in semis.