Now I have the full picture. Let me write the post.

**Key drivers this week:**
– Broadcom earnings miss (weak AI chip outlook) → semis crater (Micron -17%, AMD -12.6%, Intel -9%)
– Stronger-than-expected May jobs report (172K) → yields spike, 10Y above 4.5%
– US-Iran tensions → oil up, inflation fears
– Friday: Nasdaq biggest point drop on record (-1,121 pts), S&P $1.8T wipeout
– Next week: May CPI (June 10), FOMC June 16-17 (98.7% hold priced)

Here’s the post:

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The Week in the Indices

The S&P 500 closed at 737.5, down 2.50% for the week, but the real damage was in growth. The Nasdaq 100 fell 4.50% to 705.1 after Broadcom’s failure to raise its AI chip outlook Wednesday night set off a chain reaction across semiconductors — Micron lost 17%, AMD 12.6%, and Intel 9% in two sessions. The Russell 2000 dropped 3.02% to 281.6, dragged lower by rate-sensitive small caps after Treasury yields spiked on Friday’s jobs data. The Dow held up best at 509.7, down just 0.21%, cushioned by its heavier weighting in financials and healthcare. The VIX tells the story most clearly: up 40.40% to 21.51, back above the 20 threshold that separates complacency from genuine hedging demand. Friday alone — Nasdaq’s biggest point drop on record — wiped $1.8 trillion from the S&P 500.

Sector Winners & Losers

The rotation out of growth and into value was the cleanest in months. Energy (XLE) led at +2.45%, riding oil higher on US-Iran tensions that kept WTI bid all week. Financials (XLF) followed at +1.40%, benefiting from steeper yield curves and relative safe-haven flows. Healthcare (XLV) added 2.37% — classic defensive positioning when volatility spikes. Industrials (XLI) eked out +0.61%.

On the other side, Technology (XLK) was the week’s worst performer at -5.61%, with the Broadcom miss sending contagion through every AI-adjacent name. Consumer Discretionary (XLY) dropped 4.97%, pressured by the same rate-sensitivity trade that hit the Russell. Materials (XLB) slipped 1.02%, weighed down by copper’s decline. The message: money rotated from secular growth into cash-flow-heavy cyclicals and defensives.

Rates, Commodities & the Dollar

The 10-year Treasury yield climbed 1.86% on the week to 4.536%, breaking back above 4.5% after May’s nonfarm payrolls came in at 172,000 — well above consensus. The 30-year nudged up to 4.999%, flirting with the psychological 5% level. Higher yields were the accelerant for Friday’s equity selloff, repricing rate-cut expectations further out.

Gold fell 4.90% to $4,337, pressured by dollar strength and rising real yields — the inverse correlation reasserted itself hard. Silver was worse at -8.82%. Oil was the outlier: WTI gained 3.64% to $90.54 on escalating US-Iran tensions that threatened supply disruptions, adding an inflation wrinkle the bond market didn’t ignore. Copper dropped 1.51% to $6.264, a soft read on global growth expectations. The DXY dollar index rose 1.17% to 100.1, with EUR/USD falling 1.08% and GBP/USD off 0.81%. A stronger dollar compounds the pressure on multinational earnings.

What Drove the Week

Three forces converged. First, Broadcom’s fiscal Q2 results Wednesday night — revenue of $22.19 billion missed the $22.27 billion estimate, and management declined to raise its AI chip forecast. That was enough to crack the semiconductor complex wide open across Thursday and Friday. Second, the May jobs report landed hot at 172,000 new positions, pushing yields sharply higher and forcing the market to recalibrate how long the Fed stays on hold. The FOMC meets June 16-17 with a 98.7% probability of no change priced in — but the dot plot refresh and updated projections will matter more than the decision itself. Third, oil’s grind higher on Iran tensions reintroduced the supply-side inflation narrative that markets had been trying to look past since April’s elevated 3.8% CPI print.

Week Ahead

The May CPI release on Tuesday, June 10, is the single biggest catalyst on the calendar — any upside surprise above the current 3.8% trend would pressure equities further and push 10-year yields toward 4.6%. With the VIX above 20 and the Nasdaq 100 sitting at 705.1 after its worst week in over a year, the bias leans defensive until inflation data clears. Watch the S&P 500’s 737 level — a break below opens the door to a deeper unwind of the rally that preceded it. Luna3 will be tracking the CPI print and FOMC positioning live.

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