Weekly Market Recap Week Ending: June 6, 2026
| Index/Asset | Level | Weekly Change |
|---|---|---|
| Dow Jones | 50,866 | -166 (-0.33%) |
| Nasdaq | 25,709 | -1,263 (-4.68%) |
| S&P 500 | 7,383 | -197 (-2.60%) |
| MSCI EAFE | 3,073.71 | -37.92 (-1.22%) |
| U.S. 10-Year Treasury | 4.536% | -0.7bp (-0.15%) |
| WTI Crude | $90.24/bbl | +$2.26 (+2.57%) |
Markets sold off this week after Broadcom's earnings spooked the chip sector, and a blowout jobs report sent rate-hike odds soaring. SpaceX's IPO is on the horizon, and the numbers in their S-1 deserve a hard look.
Markets Skittish
After starting the week with all three indices setting consecutive new closing records, markets sold off strongly over the next three days, with the exception of the Dow on Thursday. Broadcom (AVGO) reported a phenomenal quarter, with revenues up 48% YoY and earnings up 54% YoY. However, a slight miss in their software infrastructure segment and no guidance raise sent the stock down 13.66% for the week. Other chipmakers were not immune: Micron (MU) -11%, Qualcomm (QCOM) -13.97%, Intel (INTC) -13.5%, and Advanced Micro Devices (AMD) fell -9.63%.
Labor Market Strong
The labor market piled on. ADP Private Payrolls came in very strong, but this report is notoriously non-correlated to the Non-Farm Payrolls report. This month, though, the ADP report was just the appetizer: May Non-Farm payrolls jumped to 172,000 jobs added vs. consensus expectations of 80,000. That sent treasury yields higher and pushed the probability of a rate increase by year-end from 50% to 72.7%,¹ and that's before Wednesday's CPI and Thursday's PPI hit the tape.
Space X Launching
SpaceX will IPO on Friday, June 12 under the ticker SPCX. The underwriters are currently taking indicators of interest from institutions starting at $135/share; the final price won't be set until Thursday evening. This blog covered SPCX two weeks ago, but client questions haven't stopped, so it's worth another look. From their S-1:
SpaceX estimates its total addressable market at roughly $28.5 trillion, with AI enterprise applications alone representing $22.7 trillion of that figure. The U.S. GDP is roughly $30 trillion.
At a $1.75 trillion valuation, SPCX would trade at approximately 94 times 2025 revenue.
SPCX's most recent tender offer in December 2025 priced shares at roughly $421 each, implying a valuation of about $800 billion. The IPO target range is now $1.75 to $2 trillion, a doubling in under six months with no fundamental business development to justify it.
SPCX was profitable at $791 million net income before the xAI merger. After the merger, the company recorded a $4.94 billion net loss in 2025. In Q1 2026 alone, the loss was $4.28 billion.
In Q1 2026, SPCX spent $7.7 billion on AI infrastructure against $1 billion for space and $1.3 billion for Starlink. The balance sheet carries $23.85 billion in servers and networking and $14 billion in construction in progress. The filing explicitly states that future growth depends on technologies and markets that don't yet exist at commercial scale.
The fix is (partly) in: Nasdaq has changed their rules to include SpaceX in their composite,² which will force QQQ funds to absorb a portion of the float. The S&P 500, however, announced Thursday it will not be changing its rules. Before SPCX can join the S&P 500, the company must be profitable in the current quarter and in aggregate over their last 4. Had the S&P followed Nasdaq's lead, index funds and money managers benchmarked to the S&P would have been forced to absorb an estimated 48% of the float.³
The Week Ahead
As mentioned above, it's inflation week, with both CPI and PPI reports due mid-week. Earnings are light with only Oracle (ORCL) and Adobe (ADBE) of note.
- Monday -- None. Earnings: None.
- Tuesday -- None. Earnings: None.
- Wednesday -- May Consumer Price Index (CPI). Earnings: Oracle (ORCL).
- Thursday -- Initial Jobless Claims, May Producer Price Index (PPI). Earnings: Adobe (ADBE).
- Friday -- June Consumer Sentiment (prelim.). Earnings: None.
Closing Perspective
As always, our role is to look beyond the headlines and remain focused on what matters most for your long-term plan. Periods of volatility are a normal part of investing, even when driven by uncertain or unexpected events. We continue to monitor developments closely and will make thoughtful adjustments where appropriate. If you have any questions or would like to discuss your portfolio, we welcome the conversation.
Disclaimer - This discussion of SpaceX (SPCX) is for informational purposes only and should not be considered a recommendation or solicitation to buy or sell any security.
Footnotes
¹ https://www.cnbc.com/2026/06/04/stock-market-today-live-updates.html
³ https://coinfomania.com/spacex-ipo-could-force-index-funds-to-buy-19-of-its-float/#