The Week $1 Trillion Was Wiped From Markets — What Happened and What to Do Next Week
Nasdaq -4%, S&P -2.6%, $1 trillion wiped from chip stocks. The 9-week winning streak is over. Here's the full breakdown of this week's market crash — and your complete positioning guide for next week's critical catalysts.
The week of June 2–5, 2026 will be remembered as one of the most significant inflection points in this market cycle. What started as a spectacular Marvell surge on Monday ended with a historic chip selloff, a full Fed rate hike repricing, and Bitcoin briefly falling below $60,000. More importantly — the week ahead may be even bigger. You have five days to prepare. Here is everything you need to know.
How the week unfolded — day by day
1. Monday June 2: S&P above 7,600 for the first time. Jensen Huang calls Marvell the "next trillion-dollar company" at Computex. MRVL +25%, SOX index +6%.
2. Tuesday June 3: Broadcom reports after close. AI revenue +143% beats, but Q3 AI guide of $16B misses $17.2B estimate. No guidance raise. Stock falls 12% AH.
3. Wednesday June 4: Broadcom selloff triggers rotation — Dow record +865pts, Nasdaq drops. SpaceX IPO roadshow launches at $135/share. PDT rule abolished.
4. Thursday June 5: Hot jobs report (172K) detonates markets. 2yr yields +12bps to 4.16%. Swaps fully price Fed rate hike. Nasdaq -3%. Bitcoin briefly below $60K.
5. Friday June 5 close: Selling accelerates. Nasdaq -4.18% — worst since April 2025. S&P -2.64%. $1 trillion wiped from chip stocks globally. 9-week winning streak ends.
The three forces that caused the selloff
1. Broadcom guidance miss repriced the entire AI complex
The catalyst for the chip turn was Broadcom's failure to raise its AI chip outlook. When the leading AI infrastructure company guides below street estimates, the market reassesses every other high-multiple AI name simultaneously. Friday's selling reached a new level of intensity — the cause beyond Broadcom is unclear, but the effects are unambiguous.
2. The jobs report fully repriced Fed expectations
172K payrolls beat expectations. 2-year yield +12bps to 4.16% in a single session. With swaps now fully pricing a rate hike by year-end 2026, every high-multiple growth stock faces a structural valuation headwind. High-PE tech stocks are DCF instruments — when the discount rate rises, they fall furthest.
3. The SpaceX IPO is absorbing institutional capital
Institutions allocating to the largest IPO in history need to raise cash. For many large-cap growth funds, that cash comes from existing tech and AI holdings. This capital absorption dynamic persists through SpaceX's June 11 pricing date and beyond.
📊Weekly damage scorecard — June 2–5, 2026
Nasdaq: -4.18% Friday, worst week since early 2025. S&P 500: -2.64% Friday, closed 7,383. AVGO: -17% weekly. MRVL: Computex gains fully erased. 2yr yield: 4.16%. Bitcoin: worst week since Feb.
Next week: five events that could change everything
1. Monday June 9: Markets reopen. First 30 minutes signals panic flush (bullish reversal) vs. sustained distribution (continuation lower). Watch direction.
2. Tuesday June 10: Flagged by multiple analysts as a potential market-moving date. Watch for Fed speaker commentary or major announcements Monday evening.
3. Wednesday June 11: CPI data + SpaceX IPO pricing ($135, $1.75T) — the most consequential day of the month.
4. Thursday June 12: SpaceX (SPCX) Nasdaq debut — largest IPO in US market history begins trading.
5. June 16–17: FOMC meeting — first with a rate hike fully priced in. Kevin Warsh's debut as Chair under pressure conditions.
What the CPI print on June 11 means for every trader
CPI outcome | Market reaction | What to do |
Hot CPI (>3.5%) | Rate hike confirmed, Nasdaq falls further, yields spike, Bitcoin under pressure | Reduce AI/tech exposure further. Add TIPS, gold, financials |
In-line CPI (~3.2%) | Muted reaction — rate hike stays priced but no acceleration | Hold current positioning. Watch for SpaceX debut volatility |
Cool CPI (<3.0%) | Rate hike narrative collapses, Nasdaq relief rally, Bitcoin recovers above $65K | Re-enter AI names on the relief — strongest possible entry signal |
How to position your portfolio heading into the critical week
What to reduce or hold steady:
• AI/chip stocks — trim any overweight above 5% per position. Don't panic-sell Monday open. Wait for CPI.
• Long-duration bonds — reduce or hedge before FOMC
• Speculative crypto — $58K–$60K is critical support. Hot CPI next stop is $54K. Size accordingly.
What is positioned well for next week:
• Cash (15–20%) — gives optionality to buy AI dip on cool CPI or add hedges on hot CPI
• Gold (GLD, IAU) — performs in both hot CPI (inflation hedge) and Iran escalation scenarios
• Financials (JPM, GS, BAC, KRE) — only sector that structurally benefits from a rate hike
• Short-duration T-bills and TIPS — 4.16% 2-year yield is the best risk-free return in years
The bottom line for the weekend
This was not the end of the bull market. The S&P remains up ~10% in 2026. AI infrastructure demand is intact. What changed is the rate environment in which those assets are valued. The traders who come out of next week best will be the ones who used the weekend to understand what actually happened, sized correctly into CPI week, and had cash ready to deploy when the regime clarified.
💡Weekend action plan for traders
This weekend: review AI position sizing, set CPI alerts for June 11 8:30am ET, add SpaceX debut (June 12) to calendar. Do not make major moves before CPI. The next regime will be clearer by June 11 close.
Week recaps, next-week previews, and positioning strategies — delivered every weekend so you're always prepared before markets open.
Frequently asked questions
What caused the stock market to crash the week of June 2, 2026?Three forces: Broadcom's Q3 AI chip guide missed estimates triggering a semiconductor selloff; hot May jobs report (172K) fully repriced a Fed rate hike; and SpaceX's $75B IPO absorbed institutional capital from existing tech holdings. Nasdaq fell 4.18% Friday alone.
Is the AI trade over after this week's chip selloff?
No. Broadcom's Q3 guide still implies 200%+ YoY AI revenue growth. The selloff reflects multiple compression in a rising-rate environment, not a breakdown in AI infrastructure demand. The AI trade is being recalibrated — not ended.
What is the most important event next week?
June 11: CPI data + SpaceX IPO pricing on the same day. Cool CPI (<3.0%) triggers a tech relief rally. Hot CPI (>3.5%) confirms the Fed hiking path and extends the selloff. The June 16–17 FOMC meeting follows the week after.
Should I buy the dip in AI stocks right now?
Wait for June 11 CPI before major re-entry. A cool print is the strongest possible AI re-entry signal. Entering before CPI carries unnecessary rate risk. If positioning now, use 25–30% of your intended position size and add on the CPI reaction.
What is SpaceX's IPO date and ticker symbol?
SpaceX trades as SPCX on the Nasdaq. IPO pricing is June 11 at $135/share ($1.75T valuation, $75B raise — largest in US history). Nasdaq debut is June 12. Nasdaq-100 fast-entry eligibility begins 15 trading days post-debut.