Signing off...
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Thanks for following our coverage of financial markets today as Wall Street’s historic weekly run came to a halt to President Trump’s dismay.
Before we go, a quick update on the latest. A solid jobs report added to bets that the Federal Reserve would hike interest rates, triggering a rise in bond yields and a sell-off in the tech sector.
The S&P 500 dropped nearly 2pc, preventing the index from notching its 10th straight week of gains while the Nasdaq 100 sank more than 3pc, the most since October.
Traders are now expecting the Federal Reserve to hike rates once by the end of the year, and the yield on two-year bonds jumped by 12 basis points to 4.16pc.
US aims to squeeze out Chinese car parts in Mexico trade deal
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The US is demanding that more car parts are sourced from North America in its trade talks with Mexico.
President Donald Trump’s administration is demanding that vehicles seeking to qualify for a tariff-free treatment should have more parts such as electronics, which are typically imported from China, come from North America instead.
The talks come as US, Mexico or Canada look set to miss the deadline on July 1 to decide whether to renew the 2020 USMCA free trade deal for the next 16 years, or enter into annual reviews instead.
SpaceX said to draw more orders than shares available
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The IPO for Elon Musk’s rocket, satellite and artificial intelligence company is reportedly oversubscribed, putting the company on the verge of setting the record for the largest ever listing.
According to Bloomberg, SpaceX has already received more orders than shares available in its $75bn public offering — more than double the size of Saudi Aramco’s $29.4bn listing in 2019, which holds the current record.
The deal is expected to price on June 11 and begin trading the following day. The company is offering roughly 555.6 million shares at $135 each in a deal which could value SpaceX at roughly $1.8 trillion.
Bitcoin falls to lowest price since Trump’s election
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Bitcoin dropped below $60,000 (£45,000) on Friday, marking its lowest level since October 2024 when Donald Trump’s victory in the US elections sent the cryptocurrency soaring to record highs.
The major cryptocurrency fell by around 6pc on Friday following a sharp sell off which has seen its price fall by 17pc over the last week.
It has seen the price Bitcoin fall to its lowest levels since the US elections in November 2024.
Trump has been a major supporter of cryptocurrencies. His victory helped cause a rally in Bitcoin prices, which saw prices hit all time highs of more than $122,000 each.
However, cryptocurrency markets have slumped in recent weeks amid a major sell-off driven by investors putting their money elsewhere in anticipation the Federal Reserve will increase interest rates.
Trump says ‘stocks should go up, not down’ as jobs figures fuel sell-off
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Donald Trump has said “stocks should go up, not down” after markets slumped on new data showing a strong rise in jobs in the US.
In a post on his social media platform Truth Social, Trump said: “With a great Jobs Report, like just announced, stocks should go up, not down.”
“That’s the way it was for 200 years. Growth does not mean inflation! How else can a Country attain GREATNESS??? President DJT”
His comments come as US stocks fell as investors bet that the strong jobs figures would see a lift in interest rates by the Federal Reserve, America’s central bank.
Investors’ bets on higher interest rates added to a sell-off in US markets sparked by concerns around a possible tech bubble.
Irish slump pulls Eurozone economy into the red
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A slowdown in Ireland’s economy has seen the Eurozone record an unexpected contraction in the first quarter.
The gross domestic product (GDP) of the 21 countries in the Eurozone fell by 0.2pc compared to the previous quarter, according to new data from the European Union’s statistics agency.
It was dragged down by a sharp slump in Ireland’s economy, which saw its GDP shrink by 12.1pc, mainly due to its status as a centre for some of the world’s biggest technology companies including Apple, Meta, and Google.
However, excluding the effect of Irish GDP, eurozone growth remained steady at around 0.2pc
Energy shock is ‘elephant in the room’, says Bank of England official
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The energy price shock from the Iran war is the “elephant in the room” for economists, a Bank of England official has warned.
Speaking at an event held by UCL Economics, Swati Dhingra, an external member of the Bank of England’s Monetary Policy Committee said: “If you ask me, what’s my interest rate decision next month going to look like, or in the future, I think that’s very hard to say.”
She added: “The big elephant in the room here is what happens to energy prices, and at the moment, I don’t think any of us … as economists don’t quite understand where that’s going to be.”
Energy prices have soared since the outbreak of the conflict in the Middle East and the effective blockade of the Strait of Hormuz, which supplies around 20pc of the world’s oil and gas.
Brent crude, the international benchmark, was trading at $93.70 a barrel on Friday afternoon.
However, in April prices climbed as high as $126 a barrel over concerns that Donald Trump was considering fresh strikes on Iran.
Pound falls as traders bet on US rate rises
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The pound dropped against the dollar as traders bet that the Federal Reserve will raise interest rates after stronger-than-expected jobs figures.
Sterling was down 0.3pc to $1.339 as money markets priced in a quarter point increase in US rates by December.
The pound was up 0.1pc versus the euro to €1.158.
Gold falls as traders bet on rate rises
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Gold has fallen after the latest US jobs data, which have increased bets on the Federal Reserve raising interest rates.
Bullion was down 2.2pc to $4,388.92 an ounce as the likelihood of higher rates lowered the allure of the precious metal, which does not offer investors a regular yield for holding it.
Silver was down 4.7pc to around $70 an ounce as traders bet that the Fed will raise rates by a quarter of a percentage point before the end of the year.
US stocks fall as jobs figures ‘smash expectations’
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Stock markets tumbled on Wall Street at the opening bell after official jobs figures raised the likelihood that the Federal Reserve will raise interest rates.
The tech-heavy Nasdaq Compsite dropped 1.3pc while the S&P 500 declined by 0.7pc.
The Dow Jones Industrial Average rose by 0.1pc even as economists were wrongfooted by data showing the US economy added 172,000 jobs in May, double the number expected.
Samuel Tombs of Pantheon Macroeconomics said: “We didn’t see this coming. Payrolls have surprised the consensus to the upside for three straight months.”
Richard Carter, an analyst at Quilter Cheviot, added: “The US economy has smashed expectations with nonfarm payroll numbers coming in well above estimates.
“Ultimately, the Federal Reserve is going to have little choice but to keep interest rates higher for longer once again.”
Seema Shah, an analyst at Principal Asset Management, said: “Today’s jobs report reinforces that there is little basis for an easing bias from the Fed.”
Fed ‘closer to a hike later this year’
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The Federal Reserve is likely to push ahead with a couple of rate rises later this year as insurance against a spike in inflation from the Iran war, economists have said.
The higher than expected jump in nonfarm payrolls in May makes it harder for policymakers to “look through” higher levels of inflation, according to Capital Economics.
Chief North America economist Stephen Brown said the figures favoured so called hawks over doves on the Federal Open Market Committee (FOMC), meaning it favours policymakers inclined to raise rates rather than those who prefer to vote for cuts.
Mr Brown said: “The idea that the risks to the labour market are still tilted to the downside – as the more dovish FOMC members continue to claim – is getting harder and harder to defend.
“That leaves the hawks in pole position as the FOMC weighs up whether to raise interest rates, though our sense is that the Fed would still likely wait until at least the September meeting before pulling the trigger.”
US borrowing costs rise after blowout jobs figures
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The cost of US government soaring leapt after official figures showed the US economy added far more jobs than expected last monht.
The yield on 10-year US treasuries, a benchmark for what America pays to borrow money in financial markets, rose from 4.48pc to as high as 4.54pc after the data from the Labor Department.
It showed nonfarm payrolls grew by 172,000 in May, double analyst estimates and prompting traders to bet on the Federal Reserve raising interest rates this year.
The yield on 10-year gilts, as UK bonds are known, as climbed from 4.9pc to 4.91pc so far today.
Wall Street slump deepens as investors bet on higher interest rates
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Wall Street’s tech stocks are on track for sharp falls as traders bet that the Federal Reserve will raise interest rates this year.
US stocks turned red in premarket trading after official data showed the US economy added double the number of jobs expected last month.
Non-farm payrolls rose by 172,000 in May, having been forecast to add 88,000, while unemployment remained at 4.3pc.
The data indicates the US economy remains resilient despite the shock caused by the Iran war.
Traders are now betting that the Federal Reserve, the US central bank, will have to raise interest rates to avoid an inflationary shock from the conflict.
However, this would tighten financial conditions for tech giants investing huge sums in infrastructure for the AI boom.
In premarket trading, the tech-heavy Nasdaq was down 1.3pc, while the S&P 500 fell 0.6pc.
Garry White of Charles Stanley said: “The US economy continues to defy expectations with its resilience, which is likely to have a positive spillover into consumer confidence and broader economic growth.
“A run of strong labour market data, combined with robust consumer demand, reinforces the view that the economy can withstand tighter policy, reducing the urgency for rate cuts.
“In response, markets may further increase the probability of a rate hike in 2026 or early 2027.”
US economy adds more jobs than expected
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The US economy last month added double the number of jobs expected by analysts, while unemployment remained at 4.3pc.
Nonfarm payrolls rose by 172,000 in May, having been forecast to add 88,000.
The increase in payrolls in April was also revised higher from 115,000 to 179,000, accoridng to the Labor Department.
Average hourly earnings rose at a slower pace of 3.4pc, down from 3.6pc, as had been expected.
Markets at risk of ‘unsettling volatility’
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Markers are at risk of “unsettling volatility” as a result of the belief that any downturn in prices is an opportunity to buy shares at cheaper prices, an economist has warned.
The advice to “buy the dip” has become a cliche among investors.
Mohamed El-Erian, chief economic adviser at Allianz, issued a warning as tech stocks take a tumble:
Just heard during a financial television interview on equity investing: "ANY pullback is an opportunity to buy."
— Mohamed A. El-Erian (@elerianm) June 5, 2026
This echoes quite a broad market belief -- conditioned by years of policy puts and outcomes-- that has increasingly ensured market corrections are remarkably limited…
Around £46bn wiped off Bitcoin treasury companies
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Some $62bn (£46bn) has been wiped off the value of listed companies which hoard cryptocurrencies in recent months as the excitement around tech and digital assets sours.
The combined market value of so-called Bitcoin treasury companies has fallen from a peak of $134bn in October to $72bn this week, according to Bloomberg.
Bitcoin has fallen in value by 50pc over the same period, in turn triggering a downturn in the value in these companies, many of which have borrowed money to invest in digital assets.
The world’s largest cryptocurrency has slumped around 15pc since Monday in its worst week since the collapse of FTX in November 2022.
Strategy, the best known Bitcoin treasury company founded by Michael Saylor, announced this week that it recently sold some of its Bitcoin for the first time in four years, raising concerns among cryptocurrency holders.
Hayden Hughes, managing partner at Tokenize Capital, said: “With prices now unwinding, digital-asset treasuries are faced with a stark choice: default on their debt or sell assets.
“The forced selling has shattered the perception that they would monotonically act as permanent ‘buy and hold’ investors.”
Melania coin falls 99pc since launch
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In a sign of how hype around tech and cryptocurrency has waned, the losses on Melania Trump’s coin now exceed 99pc.
The First Lady announced the launch of the Official Melania Meme in January last year, and its worth has fallen from a peak of around £6.91 to just over 5p today.
How to invest in Elon Musk’s SpaceX IPO – and whether you should
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Investors hope every stock they pick will go “to the moon”, but some companies take that more literally than others.
Elon Musk’s rocket company SpaceX offers UK retail investors the opportunity to own a slice of one of the most widely anticipated stock exchange floats in recent years and gain exposure to technology that spans space travel, artificial intelligence (AI) and high speed internet.
In a first for UK retail investors, individuals holding investment accounts will have an opportunity to participate in the US initial public offering (IPO), an event that has been historically off limits to the UK retail base.
Here, Linus Uhlig and Charlotte Gifford from Telegraph Money explain how you can invest in SpaceX and whether the company is worth the hype.
Chipmakers poised to fall on Wall Street
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US semiconductor companies are on track to fall when trading begins later on Wall Street as the AI rally loses steam.
Nvidia, the world’s largest company worth $5.3 trillion (£3.9 trillion), fell 1.5pc, while Intel, Micron, AMD and Broadcom dropped between 2pc and 3.8pc in premarket trading.
Semiconductor companies have driven the recovery on Wall Street from the sharp falls triggered by the US and Israeli war with Iran.
However, stocks have fallen heavily this week after Broadcom revealed weaker-than-expected forecasts.
Barclays analyst Emmanuel Cau said: “Momentum in AI/Semis feels more shaky.”
Wall Street is also bracing for the latest US employment figures, which are expected to show non-farm payrolls rose by 88,000 jobs in May, after increasing 115,000 in April.
In premarket trading, the tech-heavy Nasdaq 100 was down 0.9pc, the S&P 500 fell 0.4pc and the Dow Jones Industrial Average was up 0.2pc.
Anthropic calls for global freeze in AI development
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Anthropic, the world’s most valuable AI start-up, has called for a global freeze in AI development and warned that humans risk losing control of the technology.
The company behind the Claude chatbot offered to suspend work on more powerful systems if it could be assured that others would do the same.
“If it were possible to effectively slow the development of this technology to give ourselves more time to deal with its immense implications, we think that would likely be a good thing,” executives at the company wrote.
They compared the rise of powerful AI systems to an “arms control problem” and warned that there was a limited amount of time to rein in the technology.
Markets in ‘full on greed mode’
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Shares will surge again if Donald Trump gets a peace deal with Iran, even though AI is probably in a bubble, according to Telegraph readers.
Here are some of the views from our comments section below, and you can join the debate here.
FTSE 100 boosted by software shares
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The UK’s flagship stock index has risen as software and analytics shares defied the global caution around AI.
The FTSE 100 was up 0.3pc, with credit giant Experian up 3.1pc, London Stock Exchange Group and Rightmove up 2.5pc and Relx up 2pc.
Autotrader gained 2.2pc while accounting software group Sage was up 1.9pc.
Software shares had fallen heavily earlier this year over concerns AI would replace their business models.
Analyst Michael Hewson said over concerns over the broader future of software as a service companies “to some extent looks overdone”.
Meanwhile, micro computer manufacturer Rapsberry Pi surged by more than 25pc to lead gains on the FTSE 250 after announcing it expects profits to exceed its previous forecasts after a better-than-expected first half of the year.
The company experienced sharp swings in its share price in recent months after speculation its technology could be used to power an AI chatbot.
Damindu Jayaweera, an analyst at Peel Hunt, said its recent surges appeared to have been “largely driven by sentiment from social media”.
China and Hong Kong slump in tech downturn
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China’s mainland stocks ended the week lower as investors took profits on AI and semiconductor shares after a strong rally this year.
China’s blue-chip CSI300 Index closed 1.8pc down, while the Shanghai Composite Index lost 0.7pc. Hong Kong’s benchmark Hang Seng was down 1.2pc.
For the week, the CSI300 Index and the Hang Seng Index fell 1.5pc and 0.9pc, respectively.
AI and communication shares tumbled following a softer-than-expected outlook from US chipmaker Broadcom, which has triggered a downturn among global semiconductor stocks.
UBS China president Janice Hu said: “The tech sector remains the core driver of long-term outperformance in China’s equity markets.
Nvidia boss promises ‘surprises’ as he visits Korea
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Jensen Huang, the chief executive of Nvidia, arrived in Seoul Friday for a packed schedule of meetings with tech leaders.
He promised “some surprises” for South Korea while predicting robotics will be the country’s next major growth sector.
The visit comes about seven months after Mr Huang’s last trip to the country, when he pledged around 260,000 hi-tech chips for physical and agentic AI to the government and major firms including Samsung Electronics, SK Group and Naver.
“I have brought a lot of business to Korea. I have some surprises,” he said after arriving at Gimpo International Airport.
He declined to elaborate further saying: “I cannot tell you. Otherwise, it would not be a surprise”.
He said robotics is going to be the “next major sector here in South Korea”, and that the country is “extraordinary at manufacturing, mechatronics, and also artificial intelligence”.
“The fusion of all of that technology is perfect robotics,” he added.
South Korea’s stock market has been one of the major beneficiaries of the excitement surrounding AI, with its Kospi index rocketing by 93pc so far this year.
British computer chip company swept up in AI sell-off
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British computer chip company IQE has fallen sharply for a second day as doubts grow about AI valuations.
Shares in the London-listed manufacturer, which makes semiconductor wafers at its factories in Wales, dropped by as much as 5.1pc in early trading.
It had fallen by 4.6pc on Thursday after US semiconductor giant Broadcom underwhelmed investors with its revenue forecasts earlier this week. It dropped 7.5pc on Wednesday.
Energy failures are destined to doom Wall Street’s AI euphoria
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Market manias have patterns. The most powerful ones are genuine technological revolutions pushed far beyond rational limits by crowd psychology.
By mid-1999 it was already clear to veteran investors and students of economic history that the dotcom bubble had reached parabolic insanity.
The speculative momentum was still unstoppable – and would run a lot further – but grown-ups knew by then that few of the high-flying start-ups were ever going to generate a viable revenue stream. The authentic success stories would have to fight each other in a cannibalistic struggle for survival.
We are nearing the same point today with AI, although this time for a different and overwhelming reason.
European stocks fall in AI ‘hangover’
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European shares fell at the open in a “hangover” from Broadcom’s weaker than expected results, which triggered a tech sell-off on Thursday.
Germany’s Dax was down 0.4pc, while the Continent-wide Stoxx 600 fell by 0.2pc. The Cac 40 in France was flat.
It came after Asian markets closed sharply lower, with the Kospi in South Korea ending the day down 5.5pc and the Nikkei 225 in Japan dropping by 1.3pc.
Jim Reid, an analyst at Deutsche Bank, said: “Asian markets are seeing some decent sized tech losses in what seems to be a hangover from Wednesday night’s Broadcom results where forecasts weren’t as elevated as some of the more optimistic predictions hoped.”
On Wall Street, all three of the main US indexes were lower, with the Nasdaq 100 down 1.3pc in premarket trading.
Mr Reid added this was “weak for this time of the day”.
UK stocks fall at open
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The FTSE 100 fell at the start of trading amid a lack of progress in US-Iran peace talks and caution over tech stock valuations.
The UK’s flagship index fell 0.2pc to 10,341.08 and the FTSE 250 declined by 0.2pc to 23,258.29.
UK computer maker hails ‘robust demand’ in AI frenzy
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A British micro-computer company has upgraded its profit expectations as it was boosted by AI mania around its technology.
Raspberry Pi said there had been “continued robust demand” for its hardware, which led to a stronger than expected first half of its financial year.
Its stock price has been subject to dramatic swings over the last year thanks to interest from AI speculators.
In February, its share price surged 30pc in two days amid chatter on social media that the company’s tiny computers can be used to power a popular AI chatbot.
In an update to shareholders, it said its underlying profitability would be “significantly ahead of current market expectations” for the full year.
Bitcoin suffers worst week since FTX collapse
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Bitcoin was on track for its worst week since collapse of Sam Bankman-Fried’s crypto exchange FTX.
Bitcoin fell 1.4pc to $62,725.54 and heading for a weekly decline of 15pc, its biggest since November 2022.
It is the sharpest drop since the collapse of FTX in one of the biggest financial frauds in history that led to its founder Bankman-Fried being jailed, having once been the youngest multi-billionaire on the planet.
Cryptocurrencies have extended recent declines as investors turn away from riskier corners of the markets.
Ether, the second largest token, was down 2.3pc at $1,732.09.
Good morning
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Thanks for joining me. We start with another sell-off in tech stocks after disappointing results from Broadcom raised fears of an AI bubble. Here is what you need to know.
5 things to start your day
1) Chinese crackdown on Western finance shakes the City | Beijing’s push to stop citizens moving money overseas triggers slumps in bank giants’ share prices
2) Skipton boss accused of bullying estate agent chief out of a job | Building society faces £7m claim at employment tribunal
3) British defence companies locked out of £100bn Nato ‘bomb bank’ | Fund could limit spending to equipment made by companies in member states
4) Morrisons vows to keep brown eggs as Sainsbury’s ditches them | Supermarket pledges to provide shoppers with choice and ‘reduce environmental impact’
5) Blackstone limits withdrawals from private credit fund | Wall Street giant restricts redemption requests amid growing fears over shadow banking collapse
What happened overnight
Shares have fallen in Asia after sharp declines for some big artificial intelligence-related stocks in the U.S.
South Korea’s benchmark Kospi has dropped 4.8pc a day after computer chipmaker Broadcom’s shares sank 12.6pc on Wall Street.
It gave a forecast that fell short of investors’ expectations, raising concerns over the wider AI and technology sector.
US memory chip maker Micron Technology dropped 7.7pc, and cybersecurity company CrowdStrike fell 3.8pc.
In Asia, investors dumped key AI-related shares, with South Korea’s SK Hynix plunging 8.4pc and Samsung shedding 5.4pc.
The Kospi as much as 7pc earlier, having roughly doubled in the past year thanks to gains for big tech companies.
Japan’s Nikkei 225 slipped 1.4pc to 66,546.84, with technology shares leading the decline, even as official data showed that Japan’s real wages rose for the fourth straight month. Chip equipment maker Tokyo Electron’s shares fell 7.2pc.
Hong Kong’s Hang Seng declined 0.8pc to 25,047.83, while the Shanghai Composite index gained 0.4pc to 4,075.31.
Australia’s S&P/ASX 200 fell 0.5pc to 8,639.50.
Taiwan’s Taiex gave up 1.5p, while India’s Sensex was up 0.2pc.
Oil prices stabilised after falling on Thursday. Brent crude, the international standard, was up 0.4pc to $95 per barrel.
Wall Street actually ended Thursday higher after falling oil prices eased pressure on US banks. The S&P 500 rose 0.4pc to 7,584.31 for its 10th gain in the last 11 days and the Dow Jones Industrial Average soared by 1.7pc, to 51,561.93, a new record.
The Nasdaq composite slipped by 0.1pc to 26,830.96.