Public Markets 3 Days

Last updated: June 6, 2026, 2:32 AM ET

Equity Markets

U.S. stocks took a sharp turn lower on Friday as the S&P 500 plunged 2.6%, its steepest decline of the year, while the Nasdaq slid 4.8% as investors dumped technology shares and rotated into defensive names. The selloff accelerated after a stronger-than-expected jobs report revived Fed rate hike bets, sending the two-year yield to its highest level in a year and pressuring mega-cap chip stocks that have driven market returns. Semiconductor shares sank broadly amid the tech carnage, with Marvell Technology and Flex set to join the S&P 500 later this month even as the index reshuffle struggles to keep pace with the volatility. Amid the turbulence, Goldman Sachs' John Flood sees opportunity in the pullback, projecting a path to 8,000 for the S&P 500 this year despite the retail-investor army facing its first major test ahead of the anticipated SpaceX IPO.

Fixed Income & Rate Outlook

Treasury yields spiked higher following the robust employment data, with the two-year note hitting its highest level in a year as traders priced in the possibility of additional Fed tightening this year. While Citigroup economists maintain their contrarian call for three rate cuts in 2026, the bond market action suggests growing skepticism about aggressive easing. Japanese government bonds have shown resilience as the Bank of Japan slowly reduces bond purchases amid volatile trading, while UK investors pulled money from cash funds and piled into bonds last month, drawn by surging yields. The WSJ Dollar Index rose 1.07% this week to 96.60, gaining on four of the past five trading days as rate differentials widened.

Commodities & Energy

Oil futures retreated modestly as traders weighed demand destruction against stalled U.S.-Iran peace talks, while OPEC crude output fell to its lowest level in decades amid the U.S. squeeze on Iran and Persian Gulf disruptions. Gold gave back gains, erasing 2026 advances as the strong jobs report fueled rate-hike expectations, though it managed a modest bounce to settle 0.88% higher at $4,475.80. Natural gas futures handed back recent gains, ending both the session and week lower, while sugar futures climbed on expectations that Brazilian mills may shift more cane to ethanol production. The commodity complex faces headwinds from Bernstein's downgrade of packaged food stocks amid inflation pressures and GLP-1 competition.

Currency Markets & Emerging Economies

The Indonesian rupiah approached the 18,000-per-dollar level, putting markets on guard for potential central bank intervention after a week of sharp equity losses. Finance and central bank officials pledged stepped-up efforts to stabilize the currency and attract inflows, while Ghana's central bank governor sees scope for rate cuts once the Iran conflict subsides. Korea Investment Corp. will open its first Tokyo office this summer as the $232 billion sovereign wealth fund expands Japanese alternative asset investments. Meanwhile, Senegal made foreign-currency bond payments ahead of schedule before an IMF visit, and Czech inflation slowed more than expected, weakening the case for imminent rate hikes.

Initial Public Offerings & Corporate Activity

Mercuria Energy agreed to acquire Raizen SA's Argentine fuel assets in a $1.4 billion deal, adding refining capacity and hundreds of gas stations to the global trader's footprint. Sinda Ltd., an Electrum-backed Mexican silver miner, filed for a U.S. IPO to fund operations in historically productive territory, while Parabilis Medicines seeks $475 million in its cancer-drug development IPO. Raspberry Pi shares surged 19.5% after the UK computer maker projected full-year earnings would significantly exceed expectations, citing robust AI-driven demand that could push unit sales above 4 million in the first half. Lila Sciences is in talks to raise about $2 billion at an $8.5 billion valuation, signaling continued appetite for AI research ventures.

Private Markets & Credit

The private credit market faces tightening conditions as lenders increase costs and curb sweeteners amid pressure from investors, ending what Ares Management's Blair Jacobson called a disconnect between negative headlines and portfolio performance. Quinn Emanuel raised London associate pay to £189,000, signaling the start of a fresh compensation war among elite law firms. Meta weighs a large equity raise to fund AI infrastructure after its blockbuster Google deal, while the company