This content was published on
June 5, 2026 - 09:36
3 minutes
(Bloomberg) — The S&P 500 is set to break a historic weekly run of gains as the artificial-intelligence trade takes another leg lower, with investors also expecting payrolls data to affirm that interest rates will stay higher for longer.Contracts for the index slid 0.6% after a flat performance for the week so far. A slide on Friday would mean that the benchmark misses out on a 10th week of gains, which would’ve been the longest such streak since 1985. Nasdaq 100 futures fell a further 1.2% after investors rotated out of high-flying chipmakers in the previous session.“The sector, and IT more broadly, is now overbought, with sizeable speculative positioning, and therefore prone to a correction at any time,” said Roberto Scholtes, head of strategy at Singular Bank.Euphoria around the power of the AI trade to pull global gauges higher took a further knock after S&P Dow Jones Indices said it will keep its existing eligibility criteria for benchmarks such as the S&P 500, rejecting proposals that would’ve allowed mega-caps to gain entry more quickly after going public.The decision means companies such as SpaceX, Anthropic PBC and OpenAI would have to wait at least a year for inclusion in the main US benchmark and to benefit from demand from passive index-tracking funds.Stocks are pulling back from record highs as Broadcom Inc.’s outlook for AI-chip sales fell short of elevated expectations. Friday’s US jobs report could also adjust expectations for Federal Reserve policy.Europe’s Stoxx 600 fell 0.2%. MSCI’s Asian equities gauge fell 1.6%. South Korea’s Kospi — the world’s best-performing gauge this year and a bellwether for AI investments — slid 5.5%.Currencies were a focus in Asia with the Korean won extending its drop to a new 2009 low. The Indonesian rupiah traded near its record low against the dollar as foreign investors pulled billions of dollars in bonds. The Indian rupee strengthened after the central bank announced steps to boost capital inflows.Corporate Highlights:Nvidia Corp. certified the three biggest memory chipmakers to supply their most advanced high-bandwidth products for the US company’s AI accelerators, Chief Executive Officer Jensen Huang said. SpaceX set out its IPO pitch to retail investors early on Thursday with a video in which Chief Financial Officer Bret Johnsen joins the dots between the company’s rocket, satellite and AI businesses. Some of the main moves in markets:StocksThe Stoxx Europe 600 fell 0.2% as of 8:33 a.m. London time S&P 500 futures fell 0.6% Nasdaq 100 futures fell 1.2% Futures on the Dow Jones Industrial Average were unchanged The MSCI Asia Pacific Index fell 1.6% The MSCI Emerging Markets Index fell 2% CurrenciesThe Bloomberg Dollar Spot Index fell 0.1% The euro rose 0.2% to $1.1632 The Japanese yen was little changed at 159.91 per dollar The offshore yuan was little changed at 6.7719 per dollar The British pound rose 0.2% to $1.3445 CryptocurrenciesBitcoin fell 1.9% to $62,352.36 Ether fell 6.3% to $1,660.67 BondsThe yield on 10-year Treasuries declined one basis point to 4.46% Germany’s 10-year yield was little changed at 3.02% Britain’s 10-year yield was little changed at 4.90% CommoditiesBrent crude fell 0.6% to $94.48 a barrel Spot gold fell 0.2% to $4,466.22 an ounce This story was produced with the assistance of Bloomberg Automation.–With assistance from Anand Krishnamoorthy and Neil Campling.©2026 Bloomberg L.P.
