S&P futures are down 0.4% Friday morning after U.S. equities finished mostly higher Thursday, with the Dow closing at a fresh all-time high. Healthcare and Financials led, while semis lagged. Global tone is softer, with South Korea down roughly 5.5% and Japan and Hong Kong each off more than 1%. Europe is down 0.2%. Treasuries are slightly firmer after yields fell 1–3 bp Thursday, the dollar is down 0.2%, gold is off 0.2%, silver is up 0.3%, and WTI crude is down 0.6% after falling just over 3% Thursday and snapping a three-day winning streak.
Semi and AI weakness remain the main focus, with tech under pressure across Asia. The underlying AI compute and capex demand story has not materially changed, but headlines have turned more cautious, including South Korean profit-sharing discussions and Anthropic warnings about risks from increasingly powerful models. Thursday’s positive was that the semi pullback came alongside broader market participation. Several notable tech earnings reports beat and raised but are trading lower, pointing to elevated expectations. Middle East headlines remain mixed, with both U.S.-Iran deal hopes and skepticism still elevated. The mega-IPO pipeline is also in focus after S&P said it will not fast-track inclusion of SpaceX and other new listings. Private credit remains under scrutiny, with reports that funds are tightening lending standards and raising rates.
Economic Calendar
The May employment report is the key macro event today. Consensus expects nonfarm payrolls to rise just under 90K, following April’s 115K gain. The unemployment rate is expected to hold at 4.3%, while average hourly earnings are expected to rise 0.3% m/m after a 0.2% increase in April. Next week brings CPI and PPI data, Apple’s WWDC, and earnings from ORCL and ADBE.
Company News
- IOT: Beat and raised FY guidance, with takeaways largely positive, though investors focused on NNARR growth deceleration and a muted Q2 guide.
- GWRE: Pressured on softer ARR and concerns around deal slippage.
- RBRK: Beat and raised guidance, with generally positive takeaways, though the bar was high and ARR upside was lighter than recent quarters.
- DOCU: Weaker as the beat was smaller than recent quarters, with no clear resolution to the 2H growth debate and limited near-term catalysts.
- TTAN: Big gainer after a beat-and-raise, with AI monetization, margin expansion, and enterprise momentum among the bright spots.
- LULU: Sharp decliner after lowering guidance, with management flagging underperformance from some product launches.
- COO: Mixed reaction after fiscal Q2 beat, while CVI guidance was lower. The company also noted multiple bidders for its CSI business.
U.S. equities finished higher Thursday, ending just off best levels, with the Dow up 1.73%, S&P 500 up 0.41%, Nasdaq down 0.09%, and Russell 2000 up 1.45%. The Dow closed at a fresh record, while small caps outpaced large caps. The macro backdrop was fairly quiet, with markets supported by lower oil, slightly firmer Treasuries, and a modest decline in Fed hike expectations. WTI crude fell 3.0% to $93.12 after a three-day rally, while Treasury yields declined 1–3 bp across the curve. The dollar slipped 0.1%, gold rose 0.9%, silver gained 0.4%, and Bitcoin futures fell 2.4%, marking a seventh straight decline.
Middle East headlines were viewed as somewhat constructive, with Trump reportedly reluctant to restart attacks unless U.S. troops are killed and Israel and Lebanon agreeing to a fragile ceasefire. The AI/momentum trade was more mixed, with semis and memory lower after Broadcom’s report, though both groups finished well off worst levels. Earnings remained an important driver, with several high-bar tech reports under pressure. Macro data showed Challenger layoffs up 16% m/m and 3% y/y in May, with AI again cited as the largest driver of job cuts. Initial claims rose to 225K, the highest since February, while Q1 productivity was revised down to 0.3% and unit labor costs came in below consensus at a 1.8% annualized rate. Friday’s May employment report remains the key macro event, with consensus looking for payroll growth of roughly 90K and unemployment unchanged at 4.3%.
Sector performance was broadly positive but uneven. Healthcare led, up 3.16%, followed by Financials +2.68%, Communication Services +2.12%, Real Estate +2.08%, Industrials +1.24%, Utilities +0.61%, and Consumer Discretionary +0.52%. Energy finished nearly flat, up 0.02%, while Materials added 0.01% and Consumer Staples slipped 0.06%. Technology was the clear laggard, down 1.43%, pressured by semis, memory, cybersecurity, networking, and tech hardware after several high-profile earnings reactions. Outperformers included banks, asset managers, credit cards, insurance, exchanges, investment banks, payments, managed care, pharma/biotech, MedTech, aerospace and defense, and REITs. Laggards included networking/communications, cybersecurity, tech hardware, chemicals, paper/packaging, copper, restaurants, food/beverage, and telecom.
Information Technology
- AVGO -12.6%: Fiscal Q2 results were in line to slightly better, but the stock sold off on a very high bar, weaker Q3 AI semiconductor revenue guidance, no increase to the FY27 outlook, a 2H-weighted deployment ramp, Google TPU diversification concerns, and margin-compression scrutiny.
- CRWD -3.8%: Q1 earnings and revenue beat, and FY guidance was raised, but analysts flagged underwhelming net new ARR upside against elevated expectations. The company also announced a 4-for-1 stock split.
- CIEN -13.7%: Fiscal Q2 earnings, revenue, and margins beat, with strong optical demand and FY revenue guidance raised. However, the stock had rallied sharply into the report, leaving expectations very elevated.
- VEEV: Beat and raised guidance, but investors focused on the timing of AI monetization.
- NTSK -19.1%: Q1 earnings and revenue were slightly ahead, but analysts flagged disappointing net new ARR, sequential ARR growth deceleration, and a still-ramping sales force. The CFO also announced plans to retire.
Communication Services
- MANU +7.2%: Rose after reports that some Glazer family members are considering selling a Manchester United stake.
Consumer Discretionary
- FIVE -13.8%: Q1 results and guidance beat, with strong traffic and games/toys demand, but analysts focused on an increasingly cautious consumer and concerns about the sustainability of product momentum.
- PVH -20.2%: Q1 earnings and revenue beat, but the company unexpectedly cut FY sales guidance, citing war-related pressure in EMEA and broader macro headwinds.
- WOOF -6.1%: Q1 EPS missed, though revenue and EBITDA were ahead. Analysts flagged ongoing share losses, competition, macro pressure, and a lack of clear comp improvement.
- SNBR -67.1%: Reportedly preparing to file for bankruptcy due to debt burden and deteriorating finances, with a potential sale process part of the reorganization.
Consumer Staples
- BF.B +2.8%: Fiscal Q4 revenue beat, though earnings and operating margin were light. Management highlighted innovation, route-to-market transformation, and cost initiatives, while guiding for flat FY27 organic sales growth amid consumer pressure.
Financials
- BX +7.5%: Rallied on positive takeaways from BCRED updates despite redemption headlines. Management highlighted a slowdown in onshore redemption requests as the quarter progressed and favorable trends across other wealth products.
Healthcare
- OSCR +15.1%: Upgraded to equal weight from underweight at Wells Fargo, which cited better-than-feared enrollment and morbidity trends on exchanges and material MLR improvement.
- UNH +5.2%: Upgraded to buy from neutral at BofA, which cited improving medical-cost trends and a favorable Q2 earnings setup.
- MDT +5.1%: Upgraded to buy from neutral at BTIG, which cited consistent mid-single-digit organic growth, an improving trajectory, and a discounted valuation.
Eco Data Releases | Friday June 5th, 2026
S&P 500 Constituent Earnings Announcements | Friday June 5th, 2026
No constituents report today
Data sourced from FactSet Research Systems Inc.
