Ending the Nine-Week Winning Streak in Convincing Fashion
June 8, 2026
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The S&P 500 Index advanced at the start of last week, surpassing 7,600 and closing at an all-time high on Tuesday.1 However, Friday’s sell-off—led by the Nasdaq Composite Index, which declined more than 4%—snapped the S&P 500’s nine-week winning streak.2 The shift in sentiment began following Broadcom’s earnings release on Wednesday. Friday’s stronger-than-expected jobs report triggered a Treasury rate sell-off and drove broad market weakness throughout the day.3 Markets are now pricing in at least one Federal Reserve (Fed) rate hike this year.4 Notably, upward revisions to nonfarm payrolls suggest the labor market has been stronger than previously reported in recent months. From a credit perspective, Alphabet’s more than $80 billion in equity issuance to fund artificial intelligence (AI)-related capex is another positive signal.5
In the week ahead, several potential catalysts are in focus. The primary event for Treasury rates is likely the release of the May Consumer Price Index (CPI) on Wednesday morning.6 Core CPI is expected to increase 0.3% month over month, slightly below April’s 0.4%.7 The May Producer Price Index (PPI) will follow on Thursday.8 With the strong labor report on Friday, the Fed’s inflation mandate remains front and center. The European Central Bank (ECB) is expected to raise interest rates by 25 basis points on Thursday.9 Oracle’s earnings release on Wednesday evening will be the key earnings report.10 Existing home sales will also be released on Tuesday, with expectations for a 1% month-over-month increase.11 Existing home sales have been softer for the past several years following the elevated levels in 2021 and currently sits approximately 20% below the long-term average.12 SpaceX’s initial public offering (IPO) is expected to price on Thursday, with trading set to begin on Friday.13
Sources:
1-4,6-8,11,12Bloomberg
5CNBC – Alphabet plans to raise $80 billion from stock sales to fund AI build-out; 6/1/26
9Global Banking and Finance Review – Time to nip inflation in the bud: Five questions for the ECB; 6/5/26
10Oracle – Oracle Sets the Date for its Fourth Quarter Fiscal Year 2026 Earnings Announcement; 6/1/26
13U.S. News – SpaceX Sets $135 Price for Blockbuster IPO, Upending Wall Street Convention; 6/3/26
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