Wallstreet CN Morning Brief FM-Radio | June 6, 2026

Wallstreet CN Morning Brief FM-Radio | June 6, 2026

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Huajian Morning Voice

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Market Overview

The stronger-than-expected US non-farm employment data for May triggered market concerns about a Fed rate hike this year, causing a sharp drop in highly crowded, high-valued AI and tech US stocks. The S&P 500 dropped 2.6%, the Nasdaq plummeted over 4%, and the semiconductor index plunged 10% in a single day, wiping out over $1 trillion in market cap and marking the biggest one-day drop in six years.

Nvidia fell 6.2%, while Intel, Micron, AMD, and Broadcom declined between 7.9% and 13.3%. Meta dropped 5.5%, with reports saying the company is considering issuing more shares to raise AI capex funds.

After the non-farm data, US Treasuries were heavily sold off, with yields surging across the curve. The 2-year yield, sensitive to Fed policy, jumped by 15 basis points at one point, the 10-year rose by 5 basis points to 4.52%, and the 30-year climbed back above 5% at one time.

The US dollar surged 0.6%, posting its best single-day performance in two months, with a weekly gain of over 1%.

Cryptocurrencies plunged due to high interest rates and a strong US dollar. Bitcoin tumbled 7% intraday, falling below $60,000 for the first time since October 2024. Ethereum crashed 11% in a day, down more than 20% for the week.

Rate hike expectations combined with a strong dollar weighed on precious metals. Spot gold fell 3.6%, sharply breaking below the 200-day moving average and wiping out all year-to-date gains. Silver crashed 8%, nearly 10% for the week. WTI crude oil fell 2.9% in a day but ended the week higher, staying above $90.

In Asian trading, the ChiNext Index slumped over 3%, robotics stocks surged in the afternoon, chips and semiconductors collectively dropped, the Hang Seng Tech Index fell nearly 2%, and AI large model stocks dropped sharply.

Top News

China

Comprehensive regulatory tightening! General Office of the State Council: Establish a centralized risk monitoring platform for private equity funds, strictly control the creation of new government investment funds.

Hon Hai's May revenue up 39.57% year-on-year, with AI demand driving sustained growth for the full year.

Retail investors are still chasing highs while shareholders reduce holdings: After sharp rises in hard tech, executives collectively cash out.

Overseas

US May non-farm added 172,000 jobs, nearly double expectations, unemployment rate remains at 4.3%. “New Fed News Agency”: Fed hawks may restart rate hikes. Trump said US stocks should rise with the “excellent” jobs report, Hassett said pricing in a rate hike this year is a mistake.

Report: Walsh plans to launch Fed communication framework reform at the June FOMC, possibly scrapping dot plots and forward guidance bias.

Iran denies agreeing to transfer some enriched uranium to a third country. Sanctions and blockades squeeze Iran's oil exports to a six-year low, with 67 million barrels stranded at sea.

The first cracks of AI mania appeared as Korean stocks experienced “Black Friday,” with key support levels in danger. Signals of a bubble appeared frequently in Korea’s market—elderly people selling insurance to invest in stocks, leverage hitting records, prompting the central bank to monitor closely.

Jensen Huang arrives in Korea to a crowd of fans! He first met Faker at an internet café, then dined with Korean business executives at a samgyeopsal restaurant. In his first interview after landing: AI infrastructure will be busier in H2, and robots are Korea’s next core industry.

Report: US government plans to acquire shares in AI companies and distribute dividends to all citizens, with OpenAI’s Altman as a main driver.

AI costs, once ignored, become a “huge problem”—Altman openly admits the industry is burning cash at a crisis level.

Report: After Google, Meta considers tens of billions in new share issuance to finance AI capex.

Report: SpaceX IPO is oversubscribed, expected to begin trading June 12. SpaceX and Google sign a $30 billion compute power deal.

 

Market Closing

US and European stock markets: S&P 500 fell 2.64% to 7,383.74, down 2.59% for the week. Dow fell 1.35% to 50,866.78, down 0.32% for the week. Nasdaq sank 4.18% to 25,709.432, down 4.68% for the week. Europe’s STOXX 600 fell 0.29% to 622.66, down 0.53% for the week.

A-shares: Shanghai Composite closed at 4,027.74, down 0.74%. Shenzhen Component at 15,314.70, down 2.21%. ChiNext at 3,957.93, down 3.20%.

Bonds: US 10-year benchmark Treasury yield rose 5.74bp to 4.5303%, up 9.49bp for the week. 2-year yield up 10.39bp to 4.1470%, up 14.30bp for the week.

Commodities: Spot gold fell 3.28% to $4,328.70/oz, down 4.62% for the week. Spot silver fell 8.05% to $67.9295/oz, down 9.88% for the week. WTI July crude futures fell 2.69% to $90.54/barrel. Brent August crude fell 2.04% to $93.09/barrel.

 

News Details

Global Headlines

China

Comprehensive regulatory strengthening! General Office of the State Council: Build a centralized risk monitoring platform for private equity, strictly control new government investment funds. No new government funds at county/district level unless approved by superior government. Promote new judicial documents for handling criminal cases involving private equity. Standardize "bet-on" agreements in private equity. Increase monitoring of private equity securities funds, strengthen regulation of trading behavior. Strictly control market entries and prevent random creation of SOE funds; integrate and restructure inefficient funds.

Hon Hai's May revenue up 39.57% YoY, AI demand drives full-year growth. Hon Hai Precision’s May revenue reached TWD 859.4 billion, up 39.57% YoY, a historical high for the period. Cumulative revenue for the first five months also reached a record, with AI server business as the main driver. The company upgraded its Q2 outlook to "significant growth better than expected." Even in the traditional ICT off-season, AI demand suppresses seasonal weaknesses.

Retail investors chasing, but shareholders reducing: Tech execs cash out after surges. Amidst the AI boom, the hard tech sector has surged this year, but as prices climb, industrial capital, founders, and senior management shareholders begin to cash out, a trend especially clear since late May. Top tickers like Montage, ACM, and Changxin are being reduced by shareholders, focused heavily in AI and semiconductors.

Overseas

US May non-farm adds 172,000 jobs, nearly double expectations, jobless rate holds at 4.3%. Traders have fully priced in a Fed rate hike this year, with action seen as soon as October.

Non-farm report revives inflation concerns; “New Fed News Agency”: Hawks may restart hikes. Traders now see a full probability of 25bps Fed hikes by December, and about 60% chance by October. Nick Timiraos notes a re-accelerating job market provides ammunition for inflation hawks inside the Fed.

Trump: US stocks should rally on “stellar” jobs report, Hassett: Pricing hikes is a mistake. Trump hopes for lower rates and would leave Fed rate decisions to Chair Walsh. With strong non-farm data, markets price in a hike. Treasury yields surge, Nasdaq down 3.2%, SOX down 7.63%, Nvidia nearly -5%, AMD over -9%; Micron -9%+.

Report: Walsh to start Fed communication reform at June FOMC, may scrap dot-plots, forward guidance bias. New Fed Chair Walsh is considering the deepest reforms in decades: dropping dot plot interest rate forecasts and deleting forward guidance language from statements. This upheaval could unsettle how Wall Street reads the Fed and affect bond, currency, and stock markets’ “compass.”

Iran denies agreeing to transfer some enriched uranium to a third country. According to IRNA, a source close to Iran's negotiating team said Saudi Arabian media's reports were false. US-Iran talks have not involved nuclear issues, which were postponed for future discussions.

Sanctions squeeze Iran’s crude exports to a six-year low, 67 million barrels stranded at sea. Iran’s May oil exports dropped more than 90% to roughly 210,000 bpd, a six-year crisis low. Around 67 million barrels are at sea, with floating storage consuming over 20% in two months. Analysts warn stocks could run out in two months, global supply is restricted, possibly triggering output cuts.

First cracks in AI mania? Korea’s stocks suffer “Black Friday,” key support at risk. Korea’s KOSPI Index suffered its worst single-day drop of the year Friday, SK Hynix dropped nearly 10%, and the index nears the crucial 8,000 level. Highly coupled with the Nasdaq, and as the rally is heavily concentrated in memory giants, the slump is a warning for crowded global AI trade. Goldman Sachs still projects KOSPI at 12,000, but short-term deleveraging risks have surged.

Jensen Huang lands in Korea to huge crowds! Meets Faker at internet café, dines with corporate execs at Korean BBQ. Huang’s visit aims to coordinate supply chains with Samsung, SK, deepen semiconductor (Korean cos approved for HBM4) and AI ties, and start a local R&D center; will also appear on a top talk show. Notably, on landing day, Korean stocks and memory stocks crashed, but public attention was sky-high, with a dedicated website tracking his moves and concept stocks in real time.

Huang’s first interview in Korea: AI infra to get busier in H2, robots will be Korea’s next core sector. Nvidia CEO Jensen Huang’s first Korea visit in 7 months, denied rumours of HBM cuts, said all three DRAM suppliers certified and in mass production for Vera Rubin architecture. He said Korea’s strengths in mechatronics and semis make it ideal for robots and physical AI, and hinted at “major deals and surprises” this visit.

Report: US Gov plans to buy AI company shares, pay dividends to citizens, OpenAI Altman leads. The logic: by transferring some AI shares to government, it becomes a direct beneficiary and uses returns for public good. Anthropic has not joined talks. Both OpenAI and Anthropic are preparing IPOs; government share stakes could have major financial and policy impact.

AI costs from “nobody cared” to “huge problem,” Altman admits cash burn crisis. Sam Altman admits AI running costs have become a “huge problem” for clients. OpenAI’s top client burns 100 billion tokens a month, Uber’s annual AI budget ran out in four months. Explosive usage has outpaced budgets, so cost control, model layering, and smart routing are new norms as the sector moves from pure growth to economics focus.

Report: After Google, Meta considers multibillion share issue to fund AI capex. Meta executives discuss selling tens of billions USD new shares to fund AI capex as high as $145b for 2024 and even higher through 2027. With SpaceX, Anthropic, and OpenAI also fundraising, equity financing windows are closing. Alphabet just finished fundraising, and Meta is accelerating internal discussions but denies the news. Meta fell 6.6% intraday.

SpaceX

Report: SpaceX IPO oversubscribed, trading expected June 12. Media say SpaceX orders outnumber shares available; pricing June 11, open June 12, but still in early marketing so details could change.

SpaceX and Google sign $30 billion compute deal. From October 2024 to 2029, Google pays SpaceX $920m/month, total $30b+, for 110,000 Nvidia GPUs, meeting explosive AI demand. This solidifies SpaceX as a key AI computing infra provider.

In-depth on “biggest IPO ever”—SpaceX. SpaceX’s trillion-dollar IPO is a spectacular capital event, bringing investors from cloud/software back to “heavy industry computing” (spaceships, launch towers, mega batteries, orbital laser routes, nuclear gen sets). Behind the valuation: jaw-dropping cash burn, concentrated control, and tons of related deals and legal risks.

SpaceX IPO surprise: retail gets up to 1/4 the float. SpaceX will offer a record up to 25% of IPO shares to retail—far higher than the industry norm of 5-10%. Major online brokers including Robinhood and Fidelity will participate. Retail placed at the heart of this $75 billion listing.

SpaceX “perfect storm” coming: Three big hedging strategies. SpaceX IPO could trigger tens of billions in cash migration, amplify US equity volatility. BNP Paribas recommends: hedge with SMH puts, use VIX and SPY options to bet on higher volatility, and see value in long-term Tesla vol. Catch tail/support risks from liquidity shocks.

Wall Street backs high-priced IPOs, Morgan Stanley: SpaceX 2040 revenue may reach $3.4 trillion! Morgan Stanley forecasts SpaceX will make $3.4 trillion in revenue in 2040; Goldman Sachs expects $470b by 2030, $322b from AI. 2025 revenue only $18.7b, with a $4.9b loss. Goldman and Morgan lead the underwriters and will earn most of the fees.

Selected Research

JPM turns bullish after years, upgrade Tesla: humanoid robots to drive next decade’s growth. JPM upgrades Tesla to “neutral” with a target price of $475 (from $145). This marks a big shift to valuing robot and autonomous driving growth potential, from traditional car profits.

Goldman: Non-US “copper squeeze” to intensify; if US tariffs hit, LME copper may hit $14k in H2. Goldman sees a “non-US” supply hole—US imports are draining global supply; with top copper mines’ delays to 2028, ex-US market shortfalls will reach 640,000 tons by 2026. If the US imposes tariffs, copper could break $14,000 this year.

China Macro

Xi Jinping to make state visit to DPRK.

State Council meeting: research on future industry development, promote new-type industrialization. The meeting emphasized developing next-gen smart manufacturing, boosting industry foundation, key chains, focusing on core techs, improving energy/resource capacity, and raising resilience/security. Future industry needs forward-looking planning, more effort, stay proactive.

Monthly withdrawals, wider use: two big changes for centrally managed housing fund. Employees can withdraw their housing fund monthly for buying homes, supporting first and second improved homes. From June 5, 2026, withdrawals for renting can be combined in the housing fund balance for loans.

JPM: A-share liquidity stable, market worry overdone, pullback is buying chance for domestic AI. JPM says China’s stock liquidity is healthy, concerns over new IPOs and public fund style drift are exaggerated. Pullbacks in domestic AI core chains are golden buying windows, with major hardware tech still in early surges since April.

Domestic Companies/Industries

Food delivery war annual bill: 150 billion burned, but what changed? No clear winner, but everyone “wins” differently.

Overseas Macro

Eurozone Q1 economy unexpectedly shrinks, Iran war clouds outlook. Eurozone Q1 GDP -0.2% QoQ, first drop since 2022. May private sector activity fell at the fastest pace in 18 months, inflation at 3.2%. With inflation and contraction, ECB still expected to hike next week, making policy balancing extremely tough.

Japan real wages rise 4th month, Nomura: June rate hike “almost certain”. April real wages +1.9% YoY, 4th straight rise—the longest since end-2021; nominal wages above expectations. Nomura sees June hike as “almost certain” as spring negotiations feed through. But household spending fell 5 months, PPI inflation hit 12-year high—strong wage gains mask weak consumption.

Overseas Companies

Marvell Tech and Flex to be added to S&P 500. Changes take effect June 22 at the US open; Campbell’s and Pool Corp will be removed. S&P 500 inclusion means access to a wider investor base, including passive and some restricted active funds. Marvell +6% post-market, Flex +4%.

“White House Stock God” again bullish: Trump says Fannie, Freddie could reach $1T market cap. Fannie up 10.4% intraday Friday, Freddie up 9.7%, but then fell back. Fannie closed -0.74%, Freddie -1.16%. Previously, Trump positions or comments preceded surges in Intel, Micron, Dell, etc.—his statements draw high market attention.

From “competing on capacity” to “cooling race”—in HBM5 era, the three memory giants launch a ‘cooling war’. Samsung launches HPB tech with independent silicon heat paths; SK Hynix releases iHBM with on-package cooling; Micron focuses on low-power with passive TSV trench cooling. Cooling has become a new competitive front for 3D packaging.

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Risk Warning and DisclaimerThere are risks in the market; investment must be cautious. This article does not constitute personal investment advice and does not consider any individual user's special investment objectives, financial situation, or needs. Users should consider whether any opinions, views, or conclusions in this article are suitable for their own circumstances. Investors assume responsibility for any actions taken based on its content. ```