On June 2, 2023, major U.S. stock indexes saw significant declines, with the S&P 500 Index down 1.00%, the Dow Jones Industrial Average down 0.26%, and the Nasdaq 100 down 2.08%. This comes as investors moved away from AI-infrastructure and semiconductor stocks following a disappointing sales outlook from Broadcom. The markets reacted negatively to stronger-than-expected U.S. May nonfarm payrolls, which rose by 172,000, exceeding expectations of 88,000, contributing to speculation about a potential Federal Reserve interest rate hike.
The yield on the 10-year Treasury note climbed to a two-week high of 4.54% amid these developments. Crude oil prices dropped over 2% despite ongoing tensions between the U.S. and Iran concerning an interim peace deal. Broader European markets also fell, with the Euro Stoxx 50 down 0.56% and Japan’s Nikkei down 1.31%.
As of the latest reports, 83% of S&P 500 companies that have reported Q1 earnings beat estimates, with projected Q1 earnings growth of 12% year-over-year, though earnings outside the tech sector are expected to grow only 3%, the weakest in two years.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
