Shesa's Weekend Stock Market Updates - 6|7|26

Welcome to my weekends updates

Last week we saw strong early momentum after May’s rally but a huge sell-off on Friday, driven by a strong U.S. jobs report that raised interest rate concerns and some other factors. Let us first look into the U.S. stock Indices Performance:

• S&P 500: Closed at 7,383.74, down -2.64% on the day. It had hit recent highs near 7,620 earlier in the period before pulling back.

• Dow Jones Closed at 50,867, down -1.35%. It had gone past 51,000 earlier. 

• Nasdaq: Closed at 25,709, down a steep -4.18% on Friday, reflecting heavy tech selling. Nasdaq had its worst day since APRIL 2025. The drop of 1,121.53 was the WORST points drop ever in the history of Nasdaq. The technology stocks and particularly semiconductor stocks were hit the hardest as they had appreciated too much.

So, what caused this massive drop in the stock market, particularly Nasdaq.

• First, the non-farm payrolls jumped to 172,000 vs. estimated for 80,000. Unemployment rate 4.3%. As a matter of fact, Bond yields went up causing the fear of interest rate hike
• The oil prices went up 3% causing further fear of inflation
• SpaceX IPO also possibly contributed as investors wanted to raise some cash for participating in the IPO.
• Broadcom (AVGO) lackluster earnings deteriorated chip sector as investors took some chips out of the table
• Google and META planning to sale more equity to raise more capital raised concern
• The weekly options expirations further contributed to the volatility

All of the above had some contributions of the major pullback but primary reason was big jump in the job numbers. Good news became the bad news!

Other News

• Alphabet (GOOG) said it plans to sell $80 billion in stock, including a $10 billion investment by Berkshire Hathaway in a private placement. It’s good to see Berkshire’s confidence in the company. In the negative side, more dilution for the stock
• There was also rumor that META is also planning to raise more than $10B selling equity
• Marvel (MRVL) will be added to S&P 500 on June 22. The news came after the close of market last Friday. We may see some rally on this stock in next few days. 
• Apple (AAPL) World Wide Developers Conference (WWDC) will be starting tomorrow. This will be the last WWDC for Tim Cook.

SpaceX IPO Updates

Elon Musk has reportedly set the SpaceX (SPCX) IPO price at $135 per share. This would be the biggest IPO in the history. Here are the details:

Total shares offered: 555,600,000

IPO size: $75 billion

SpaceX valuation: $1.75 trillion

IPO Date: Friday, June 12 (Expected, not confirmed yet)

My view: If we believe in the future and Elon Musk to deliver then one should buy after IPO. But if the factor of consideration is valuations based, then better to stay away. We can expect major volatility in the stock price either way after the IPO. It's not 100% sure whether the IPO will happen on Friday, 6/12. If it happens, I expect it to open big but we will see how investors act and react. I may take a small position and keep accumulating slowly on pullbacks. Every investor should act based on his/her comfort level. 

Note: The IPO offering for early investors have already come. If anyone is interested, please contact your broker viz. Fidelity, Robinhood, eTrade etc..

Earnings Last Week

Broadcom (AVGO

• EPS: $2.44 vs. $2.40 (beat)
• Revenue: $22.19 billion vs. $22.27 billion (miss)
• Guidance: Revenue $29.4 billion, vs. $28.53 billion (beat)

My View: The stock had a huge run before the earnings and expected to deliver much better results. But it was a disappointment. The results was not up to expectations! The shares got hammered. I will hold it, but there are other companies who came with much better results. So, better to focus on those.

Earnings this week

Tue, 6/9: Oracle (ORCL): Oracle should leverage the AI Boom. But I will wait and watch. 

Thu, 6/11: Adobe (ADBE): I do not have this stock and no plan to add it. 

Economic Report this week

Wed, 6/10: Inflation/Consumer Price Index (CPI) ==> VERY IMPORTANT

Thu, 6/11: Producer Price Index (PPI)

Stocks to watch

SPCX, TSLA, MU, MRVL, DELL, NVDA, ORCL, SOXL, NBIS, APLD, NOK, AVGO

Note: The above are not buy/sell recommendations. 

What to expect?

As I said before, these days stock market changes very fast. Hence, I keep emphasizing on taking some chips out of the table and have some very powder (CASH) available to leverage such pullback or correction. This is very important. 

Furthermore, there are few important events, SpaceX IPO, CPI and PPI. The inflation reports may cause increased volatility (up/down). Inflation is expected to escalate further. Also, Oracle's earnings will be key for related AI stocks. It's better to focus on the stocks which came with great earnings like Micron, Dell, Nvidia slowly. These may bounce back faster. But it's better not to jump in with both hands as nobody knows how the market situation will be. Meanwhile, Iran has launched ballistic missiles at Israel over the weekend. Also, there are too many important events this week, so we need to be watchful. Hence, caution is warranted.