US equities experienced a violent stress test on Friday, June 5, 2026, with nearly $2.5 trillion wiped out and the Nasdaq plummeting 4.18% after a robust jobs report aggressively repriced Federal Reserve rate hike expectations for December 2026. This systemic selloff is driven by physical crude shortages, with commercial inventories and the US Strategic Petroleum Reserve projected to reach critical depletion by mid-June and August 2026, respectively, intensified by the Strait of Hormuz chokehold.
This energy scarcity forces oil-importing nations to liquidate US Treasuries, steepening the yield curve. Concurrently, the Bank of Japan's anticipated June 2026 rate hike is unwinding the Yen Carry Trade, pulling capital from US markets. The AI valuation bubble is also bursting, as tech giants like Alphabet and Meta issue massive equity offerings to fund CAPEX, while OpenAI lobbies for government backstops. The $1.77 trillion SpaceX IPO, largely an insider exit, relies on Nasdaq-100 inclusion to absorb $1.66 trillion in shares by late November 2026, contributing to a severe Bitcoin blowout.
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