Stocks slump as Big Tech sinks and a strong May jobs report boosts odds for higher interest rates

Nvidia announced RTX Spark, its first system-on-chip for Windows laptops/desktops, featuring a 20-core Arm-based CPU, a Blackwell GPU with 6,144 CUDA cores, up to 128GB unified memory, and 1 petaflop AI performance, with launch partners including Microsoft, Dell, HP, ASUS, Lenovo and MSI; over 30 laptops and 10 desktops are planned for fall 2026 on TSMC’s 3N process. Nvidia also said Vera Rubin entered full production for data centers, with early customers including OpenAI, Anthropic, xAI, Dell,

U.S.-listed semiconductor stocks fell sharply Friday, with the PHLX chip index down 10.3%—its biggest one-day drop since March 2020—adding to Thursday’s losses. The selloff followed Broadcom’s weaker-than-expected quarterly report on demand for custom AI chips. Nvidia fell ~6%, Micron -13%, AMD ~-11%, and Broadcom -7.9%.

SpaceX amended its IPO prospectus on June 1 and June 3, adding (1) a June 5 Cloud Service Agreement with Google LLC for about 110,000 NVIDIA GPUs plus CPUs and related components, with payments of $920 million per month from Oct 2026–Jun 2029 (~$29.4 billion total), and (2) a 5% “friends and family” share carve-out that can be sold immediately after listing, unlike executives’ 1-year lockup.

SpaceX said it signed a multi-year cloud services deal with Google, securing large-scale computing capacity ahead of its US IPO next week. A regulatory filing says Google will pay about $920 million per month from Oct. through June 2029, with capacity ramping up through Sept. The pact covers ~1,100 Nvidia GPUs plus other components. The filing estimates Google+Anthropic compute deals at ~$26 billion/year.

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.

Meta Platforms’ shares (META) are about 25% below their August all-time high, despite business momentum. Reports said Meta is considering raising tens of billions via a stock offering to fund AI. For the quarter ended March 31, 2026, revenue rose 33% to $56.3B; ad revenue was $55B. Earnings were $10.44/share including an $8.03B tax benefit; adjusted was $7.31. Meta plans 2026 capex of $125B–$145B.