Stock Index Futures Muted as Investors Parse Middle East Developments, U.S. JOLTS Report in Focus

SpaceX said it signed a multi-year cloud computing deal with Alphabet’s Google ahead of its planned U.S. IPO next week. In a regulatory filing, SpaceX said Google will pay $920 million per month from October 2026 through June 2029, ramping capacity through September, including about 110,000 Nvidia GPUs. The agreements with Anthropic and Google total about $26 billion annually, and over $70 billion in aggregate if not terminated early.

Wall Street’s nine-week winning streak ended Friday as the Nasdaq Composite fell 4.18% and the S&P 500 dropped 2.64%, with chip and tech stocks leading losses. The Philadelphia SE Semiconductor Index plunged, wiping out more than $1 trillion in value, after May jobs data showed 172,000 jobs added and unemployment at 4.3%, raising expectations of a hawkish Fed.

US tech and semiconductor stocks fell sharply on Friday as investors cooled on AI-driven valuations and digested stronger US jobs data. The PHLX Semiconductor Index dropped 10.3% (steepest since March 2020), extending a two-day slide that erased about 12% and ~$1.3 trillion in chipmakers’ value. Nvidia fell ~6%, Micron 13%, Marvell 17%, AMD ~11%, and Broadcom 7.9%. The Nasdaq fell 1.4% and S&P 500 0.7%.

US-traded chipmakers fell Friday, wiping about $1.3 trillion in market value, after Broadcom’s earlier weak quarterly report on custom AI-chip demand. The PHLX chip index dropped 10.3% and was down 12% over two sessions. Nvidia fell ~6% (>$300B), Micron -13% (~$150B), Marvell -17%, and AMD -11%.

US stocks rose Thursday as the Dow hit a record, gaining about 1.8% (875 points) to a new high, while the S&P 500 added about 0.5% and the Nasdaq was little changed after earlier losses. Broadcom (AVGO) fell more than 12% after its AI chip outlook disappointed. Investors also weighed US jobless claims (225,000) ahead of Friday’s May jobs report.

Credo Technology (CRDO) reported fiscal Q4 revenue of $437 million, up 157% year over year, and adjusted EPS of $1.16, topping Wall Street estimates, and forecast more than 80% revenue growth for fiscal 2027. Analysts raised price targets: Needham to $275, JPMorgan to $250, Bank of America to $252, and Rosenblatt to $215. Despite the upgrades, shares fell after earnings.