Hot US Jobs Report Knocks Tech Stocks Off Their Perch
US employers added 172,000 jobs in May, more than double forecasts, with March and April revised up by a combined 93,000 and unemployment steady at 4.3%. The strong print pushed the next Federal Reserve move back toward a hike - odds of a 2026 rate rise on Kalshi climbed to around 52% - and triggered a sharp tech selloff, with the Nasdaq down more than 4% in its worst day since Liberation Day. A Goldman Sachs index stripping out AI and AI-adjacent names was roughly flat, exposing how concentrated the pain was in long-duration AI bets whose valuations hinge on cheap money.
Big Tech Lines Up Near $1tn Equity Deluge
Google is raising $85bn in the largest equity financing on record, with Meta exploring a similar move to fund $145bn of AI infrastructure spending this year. SpaceX is set to go public in days at a $75bn raise, with Anthropic and OpenAI expected to follow on the back of recent $65bn and $122bn private rounds. Combined with roughly $500bn of shares coming off lockup this year, new US equity supply is approaching $900bn.
US Real Wages Slip as Pay Lags Prices
US wages rose 3.4% year-on-year in May while inflation ran at 3.8%, leaving real pay in negative territory. Much of the price spike is oil-driven and likely transitory, but the gap removes one argument for near-term Fed easing. Job growth remains lopsided, with healthcare and social services adding 901,000 jobs since January while the rest of the economy has shed positions on net.
Intel Jumps 10% on Google Chip Order
Intel shares rallied 10% after Google placed an order for 3 million chips, lifting the wider semiconductor complex. The deal marks a rare bright spot for Intel as it tries to win share in AI-related silicon. Broader chip names rebounded alongside the S&P 500 and Nasdaq after Friday's selloff.