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TRADING DAY-Recovery, but on mute
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TRADING DAY-Recovery, but on mute
Jun 8, 2026 2:39 PM

ORLANDO, Florida, June 8 (Reuters) - The S&P 500 and Nasdaq

rebounded on Monday from Friday's tech-led rout, on news of

anIsrael-Iran detente and as investors bought back cheapened

stocks. The recovery was fairly muted though, suggesting worries

over interest rates and AI exuberance remain.

In my column today, I look at whether the adage that

"economic expansions don't die of old age, they're murdered by

the Fed" will apply to the AI-driven equity bull market.

Friday's selloff on the back of strong U.S. jobs data suggests

it might.

If you have more time to read, here are a few articles I

recommend to help you make sense of what happened in markets

today.

1. Iran and Israel say they have halted strikes on each

other for now

2. How a few AI chip giants warped Asia's stock picking game

3. Nvidia clinches deals with South Korean giants including

SK Group to advance AI boom

4. Oil market calm masks a host of unknowns: Bousso

5. Japan's economy cools on weak capex in Q1, revised data

shows

Today's Key Market Moves

* STOCKS: South Korea -9%, Japan -4%, China -3%. Europe, UK

little changed. S&P 500 +0.3%, Nasdaq +0.9%, Dow -0.2%.

* SECTORS/SHARES: "SOX" chip index +6%. Only three of 11

sectors on S&P 500 rise: tech, energy, consumer discretionaries.

Intel +11%, Micron Technology +10%, Apple -2%.

* FX: Dollar dips slightly, USD/JPY holds above 160.00. KRW

soars 2%, biggest EM climber; CLP down more than 1%, biggest EM

decliner

* BONDS: JGB yields +5 bps; U.S. yields +4 bps at long end,

curve bear steepens.

* COMMODITIES/METALS: Oil up ~1%.

Today's Talking Points

* Lacking luster

After Friday's selloff, a bounce on Wall Street on Monday

was always likely. We got one, but it was pretty patchy, at

least at a headline index level - the S&P 500 rose 0.3% after

falling 2.6%, the Nasdaq rose 0.9% after sliding 4%, and the Dow

slipped further after losing 1.3% on Friday. Only three of the

11 sectors in the S&P 500 rose.

This is all the more surprising given the Iran-Israel truce

hopes. On the other hand, investors have had plenty of Middle

East false dawns recently, and there was no pullback in bond

yields to seize upon - longer-dated Treasuries actually rose on

Monday.

* SpaceX in the City

This is the week. SpaceX lists on Friday, aiming to raise

$75 billion, which will be the most ever for an IPO and value

the company at an eye-watering $1.75 trillion. The mania is

palpable, but there are good reasons for caution too.

SpaceX is changing who gets access to shares; it's allowing

an early exit for insiders; Elon Musk is not giving up control

and can only be fired as CEO if he agrees to it; and it is still

a loss-making business. Investors don't seem to care about any

of that right now though - demand is strong. Very strong.

* In Europe's defense

Germany and France are scrapping a landmark project to

develop and build a new-generation fighter jet, according to

German sources, bowing to industrial rivalries over Europe's

most ambitious defense program.

The decision to end the core pillar of Europe's largest

defense project comes at a time when growing threats from Russia

and the U.S. are piling pressure on Europe to re-arm itself.

Monday's development signals countries may be pursuing this on

an increasingly unilateral basis.

What could move markets tomorrow?

* Developments in the Middle East

* Australia consumer sentiment (June)

* Taiwan trade (May)

* South Korea GDP (Q1, revised)

* Germany trade (April)

* Germany industrial production (April)

* Mexico inflation (May)

* Canada trade (April)

* U.S. trade (April)

* U.S. Treasury sells $58 billion of 3-year notes at auction

Want to receive Trading Day in your inbox every weekday

morning? Sign up for my newsletter here.

Opinions expressed are those of the author. They do not

reflect the views of Reuters News, which, under the Trust

Principles, is committed to integrity, independence, and freedom

from bias.

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