Key facts
- The Nasdaq and S&P 500 reached record highs driven by technology gains and AI optimism.
- Nvidia CEO predicted Marvell Technology could reach a $1 trillion valuation.
- Nvidia invested $2 billion in Marvell Technology.
- A stronger-than-expected US jobs report for May fueled fears of Federal Reserve rate hikes.
- Technology and chip stocks experienced their largest daily drop of the year on Friday.
- The S&P 500 experienced its sharpest single-day decline since April 2025 on Friday.
- The S&P 500's nine-week winning streak ended on Friday.
- European shares, including the STOXX 600, ended the week lower.
- Brent crude prices remained elevated at $95 a barrel.
- The Japanese yen fell to 160 per dollar.
- Japanese authorities issued verbal warnings against excessive yen weakness.
- Options market metrics suggest the recent nine-week rally is fragile and prone to volatility spasms.
US stock markets saw a volatile week, with the Nasdaq and S&P 500 reaching new record highs, propelled by strong performance in technology shares, especially Nvidia, and optimism surrounding artificial intelligence. Nvidia's CEO predicted Marvell Technology could reach a $1 trillion valuation, leading Marvell's stock to surge over 30% after Nvidia invested $2 billion in the company. The S&P 500 achieved record closing highs for five consecutive days and a nine-day winning streak, though a decreasing number of stocks participated in the rally, signaling potential weakness. However, this upward momentum faced a significant test with the release of a stronger-than-expected US jobs report for May. This data fueled expectations of a hawkish stance from the Federal Reserve, leading markets to price in a higher likelihood of a rate hike at the Fed's December meeting. Consequently, technology and chip stocks experienced their largest daily drop of the year on Friday, causing the S&P 500 to experience its sharpest single-day decline since April 2025 and ending its nine-week winning streak. Major US indices opened lower on Friday, with the S&P 500 down 0.19%, the Dow Jones down 0.27%, and the Nasdaq down 0.25% shortly after trading began. Market on Close imbalances indicated significant selling pressure, with the S&P 500 at -$1.95 billion, the Nasdaq 100 at -$971 million, and the Dow 30 at -$668 million. European shares ended the week lower, with the STOXX 600 down 0.3% on Friday and 0.5% for the week, as the tech rally paused and Middle East tensions persisted. Brent crude prices remained elevated at $95 a barrel. The Japanese yen fell to 160 per dollar amid dollar strength and renewed Middle East tensions, prompting Japanese authorities to issue verbal warnings against excessive weakness and signaling potential interest rate hikes from the Bank of Japan. Options market metrics suggest the recent nine-week rally is fragile and prone to volatility spasms, with analysts warning of a potential sharp pullback. Hedge funds returned 5.35% in May, outperforming the MSCI index, driven by US tech stocks, with leverage at a five-year high. Nasdaq reported a 6.6% increase in U.S. equity trading volume for May, a 17% rise year-over-year. Intercontinental Exchange reported a record 130.6 million contracts in open interest for May. Five of nine global market indexes showed year-to-date gains as of June 1, 2026.