How bad was Friday's stock market washout?
That depends on which index one wishes to measure, and by what means. The NASDAQ suffered the worst one-day point decline in its history, though on a percentage basis, the 1,121.53-point decline didn't even make the top 20. It lost 4.18%, which was bad enough, but the 20 largest percentage drops were all upwards of six percent.
The S&P's 200.59-point drop was the sixth-largest in point terms, but far from a disaster. The 2.64% decline wasn't even close to the largest percentage losses on the large-cap index, the worst being October 19, 1987's 20.47% collapse. In this century, the March 16, 2020 COVID-induced panic drop was an 11.98% decline. The index recovered within months.
The idea that the NASDAQ's largest point loss ever points to the extreme over-valuation on that index and on the S&P. Some of the more popular trades have been made in stocks that are "over their skis" so to speak. They are priced beyond perfection. Any little change may have a more pronounced effect in those shares.
From a Shakespearian perspective, Friday's tech trouncing was "full of sound and fury, signifying nothing." Most of the stocks that took the largest losses were those that were already floating amongst AI and semiconductor clouds.
Stocks
Hopes for a rebound back toward all-time highs were dashed by Friday's wipeout in equities, though the S&P and NASDAQ were far more affected than the Dow or NYSE Composite. Dow Transports actually gained 2.35% on the week.
Individual stocks that were trounced on Friday included chip darling, Nvidia (NVDA), which dropped more than six percent, though the loss only brought the high-flyer back to where it was a month ago. Another was Zuckerberg's Meta Platforms (META), which lost 5.51% in the Friday session. A poor performer this year (-10.16% ytd) and from a year ago (-14.56%), META leads the field in fantasy, sporting a 21.55 PE ratio and a 0.35% dividend yield. While the company continues to produce outsized profits, long-term holders and insiders have been bailing. Maybe it's the worst TV ads ever or Zuck's punchable face. Something is amiss that's larger than Friday's demise.
Elon Musk's Tesla (TSLA) defines the price versus value argument. The stock recently quadrupled since 2023 and is up 22% over the past year, but it took a 6.6% hit on Friday and is down 13% year-to-date. Its PE ratio is somewhere in the 350 range and the company pays no dividend. It's Musk's personal cash cow and the utmost in momentum trades. It stalled out on Friday and prospects for recovery are questionable.
Other Magnificent Seven stocks were less affected. Amazon (AMZN) dropped three percent while Apple (AAPL) and Alphabet, parent of Google (GOOG) lost 1.25% and 0.95%, respectively. Netflix (NFLX) actually gained 0.76%, mostly because they aren't involved in the AI arms race. Microsoft (MSFT) dropped a well-deserved 2.66%.
The worst losses were in the semiconductor space. Advanced Micro Devices (AMD) dropped 10.86%. Micron Technology (MU) lost 13.25%. Intel (INTC), -11.28%; SanDisk (SNDK), -11.39%. Oracle, -9.59%; Broadcom, -7.92%; Taiwan Semiconductor (TSM), -6.69%.
While these stocks all took on water Friday, it has to be understood that they were being driven higher and higher by market forces that see no alternatives and have mountains of cash available with which to pump any given stock or sector. For a change, shorts made a profit, but there's ample opportunity for these same stocks to rebound, and maybe, quickly.
The week ahead features more stragglers and not-so-household names reporting first quarter results.
Monday: (before open) Duluth Trading (DLTH), Campbell's (CPB), FuelCell Energy (FCEL); (after close) Mama's Creations (MAMA), Vail Resorts (MTN)
Tuesday: (before open) Academy Sports (ASO), Lands' End (LE), J.M. Smucker (SJM), SailPoint (SAIL); (after close) Cracker Barrel (CBRL), Casey's (CASY), Bark (BARK)
Wednesday: (before open) Chewy (CHWY); (after close) Oracle (ORCL), Aethlon Medical (AEMD), Stitch Fix (SFIX)
Thursday: (before open) Vera Bradley (VRA), McGraw Hill (MH); (after close) Adobe (ADBE), Lennar (LEN)
Friday: NONE
Data will have a focus on the inflation picture in the week ahead. Monday, the NY Fed ponies up the monthly consumer inflation expectations survey. Not hard to predict what that will look like. On Tuesday, U.S. Trade Balance is in focus along with Existing Home Sales. The BLS delivers May CPI on Wednesday with PPI out Thursday along with the weekly unemployment claims, initial and continuing.
Relevant data releases can be found at Trading View.
Treasury Yield Curve Rates
| Date | 1 Mo | 1.5 mo | 2 Mo | 3 Mo | 4 Mo | 6 Mo | 1 Yr |
|---|---|---|---|---|---|---|---|
| 05/01/2026 | 3.71 | 3.71 | 3.70 | 3.68 | 3.76 | 3.71 | 3.73 |
| 05/08/2026 | 3.71 | 3.70 | 3.68 | 3.69 | 3.75 | 3.74 | 3.75 |
| 05/15/2026 | 3.71 | 3.70 | 3.69 | 3.69 | 3.76 | 3.77 | 3.82 |
| 05/22/2026 | 3.72 | 3.69 | 3.69 | 3.68 | 3.78 | 3.79 | 3.86 |
| 05/29/2026 | 3.72 | 3.71 | 3.71 | 3.69 | 3.78 | 3.78 | 3.79 |
| 06/05/2026 | 3.71 | 3.71 | 3.71 | 3.78 | 3.78 | 3.81 | 3.88 |
| Date | 2 Yr | 3 Yr | 5 Yr | 7 Yr | 10 Yr | 20 Yr | 30 Yr |
|---|---|---|---|---|---|---|---|
| 05/01/2026 | 3.88 | 3.91 | 4.02 | 4.20 | 4.39 | 4.96 | 4.97 |
| 05/08/2026 | 3.90 | 3.92 | 4.02 | 4.19 | 4.38 | 4.93 | 4.95 |
| 05/15/2026 | 4.09 | 4.14 | 4.26 | 4.43 | 4.59 | 5.14 | 5.12 |
| 05/22/2026 | 4.13 | 4.18 | 4.27 | 4.41 | 4.56 | 5.06 | 5.07 |
| 05/29/2026 | 3.98 | 4.06 | 4.13 | 4.27 | 4.45 | 4.98 | 4.99 |
| 06/05/2026 | 4.17 | 4.22 | 4.29 | 4.41 | 4.55 | 5.03 | 5.01 |
Fear was not confined to stocks on Friday, nor during earlier parts of the week. Notes and bonds were being sold off willy-nilly, with the 2-year leading the folly, the yield up a whopping 19 basis points. The 10-year yield bounded back above 4.50%, to 4.55% on Friday and may be headed higher with a potential rate hike signal from the FOMC next week. Expectations are for the Fed to stand pat on rates, but possibly signal a coming hiking regime given the Tuesday-Wednesday meeting will be the first under Kevin Warsh's chairmanship. Warsh is likely to take a moderate approach rather than rock the financial boat on his maiden voyage.
The spread on the 2s-10s narrowed considerably, nine basis points lower, at +38, tightening up the yield curve. Full spectrum spreads remain elevated, at +130, and that may become more pronounced depending on the FOMC messaging next week. Lending to the U.S. government for any period longer than two years may be a dangerous prospect given the current inflation picture. Yields on long maturities may spike higher, leaving early buyers who thought they were getting good value as bag-holders.
The entire funding mechanism for Western economies is under assault from a variety of perspectives. Lack of trust in U.S. dealings and ongoing military conflicts have eroded confidence, sending yields higher, though the eventual destination may be as much as two percent upside from here, implying 10-year yields at 6-7% and 30-year yields as high as 8.00%. It's not like it hasn't happened before. Revisit the 1970s for reference.
Spreads:
2s-10s
2026
1/2: +72
1/9: +64
1/16: +65
1/23: +64
1/30: +74
2/6: +72
2/13: +64
2/20: +60
2/27: +59
3/6: +59
3/13: +55
3/20: +51
3/27: +56
4/3: +51
4/10: +50
4/17: +55
4/24: +53
5/1: +51
5/8: +48
5/15: +50
5/22: +43
5/29: +47
6/5: +38
Full Spectrum (30-days - 30-years)
2026
1/2: +114
1/9: +112
1/16: +108
1/23: +104
1/30: +115
2/6: +113
2/13: +97
2/20: +100
2/27: +90
3/6: +102
3/13: +115
3/20: +123
3/27: +124
4/3: +120
4/10: +124
4/17: +119
4/24: +122
5/1: +126
5/8: +124
5/15: +141
5/22: +135
5/29: +127
6/5: +130
Oil/Gas
The U.S. megaphone from the White House continues to tout "nearing a deal" in the Iran conflict while the warring parties treat the temporary ceasefire as an opportunity to take pot-shots without severe consequences. Just about every day one side or the other is accused of violating the terms of the ceasefire, and every day there is no further escalation. It has to be one of the dumbest wars ever started by the U.S. and that includes Ukraine and Vietnam, each utterly devoid of purpose other than enhancing MIC profits. The Iran war, now more than a three-month "excursion", was supposed to be short-lived, and, by the way, already won, by the good guys, Israel and the U.S.A. The farce continues.
Oil flows continue to be squeezed at Strait of Hormuz and in the Indian Ocean.
WTI crude futures closed out the week at $90.26. While the price of WTI crude has been contained in a range from $90-$110 recently, this week's small bounce may be sending a signal that the side-stepping lower will continue. The pattern is such that oil prices might drop into a lower range between $80 and $85 per barrel and remain in place while the White House pulls rabbits out of strategic hats. This could also signal a near-term bottom, given the rabbits have fled the scene and the conflict with Iran may escalate back to full-blown war, a scenario that has the White House in fear because that would mean more missiles raining down on regional U.S. bases and greater Israel, which the Iranians reduced to "lesser Israel" back in March.
Average price for a gallon of unleaded regular gasoline in the U.S. was $4.29 last week and $4.11 this week, another solid move lower, but the question is how long this, and even lower prices, can be maintained.
Prices at the pump have been kept out of crisis range, but some are warning that this may be only temporary, as reserves are being drained to keep prices under control. The disruption in the Persian Gulf is real enough and will affect Asian, African and some European and South American countries before the U.S. begins to feel any real pain.
Prices in key states:
California (leader): $5.88 (-0.14)
Washington: $5.62 (-0.10)
Oklahoma (lowest): $3.59 (-0.18)
Mississippi: $3.72 (-0.12)
Florida: $3.75 (-0.27)
Illinois: $4.54 (-0.20)
Pennsylvania: $4.32 (-0.15)
New York: $4.43 (-0.07)
Maryland: $3.96 (-0.20)
Michigan: $4.13 (-0.13)
Texas: $4.58 (-0.19)
Georgia: $3.79 (-0.01)
On Sunday, June 7th, there are fourteen (23) states with average prices below $4.00, a large move from just five last week, with 25 above the $4 threshold, not including Hawaii ($5.56) and Alaska ($5.16), with four above $5 (California, Nevada, Washington, Oregon). The Southeast has maintained as the lowest region overall over the past three weeks as a gallon of unleaded regular is averaging well below $4.00 in places like Tennessee, Alabama, Arkansas, Georgia, Texas, and Mississippi.
Bitcoin
This week: $61,809.72
Last week: $73,835.71
2 weeks ago: $76,800.00
6 months ago: $91,282.38
One year ago: $105,525.30
Five years ago: $35,479.57
Tough week for bitcoin and other crypto "hodlers", as the price of completely phony currency dropped more than $10,000. Bitcoin briefly dipped into the 50s Friday, touching $59,348. With any luck, this marks the beginning of the end for bogus money. The world already has enough fake currencies. There's literally no need for anything else.
Bitcoin's price has dipped into an area of support which held up as resistance through most of 2024 before ramping higher. The area is defined as roughly between $53,000 and $65,000, the latter figure having served as resistance relative to highs from 2021. This area is now support, though from a chartist's perspective, it doesn't appear capable of holding very long. While many of the world's honored institutions are under pressure and being questioned, why is there any faith in this short term fiction?
Precious Metals
Gold:Silver Ratio: 63.80; last week: 60.30
Futures, per COMEX continuous contracts:
Gold price 5/8: $4,723.70
Gold price 5/15: $4,543.60
Gold price 5/22: $4,543.60
Gold price 5/29: $4,569.90
Gold price 6/5: $4,353.90
Silver price 5/8: $80.83
Silver price 5/15: $76.29
Silver price 5/22: $75.92
Silver price 5/29: $75.58
Silver price 6/5: $68.00
SPOT: (stockcharts.com)
Gold 5/8: $4,714.90
Gold 5/15: $4,539.72
Gold 5/22: $4,508.74
Gold 5/29: $4,538.94
Gold 6/5: $4,327.57
Silver 5/8: $80.35
Silver 5/15: $75.94
Silver: 5/22: $75.48
Silver 5/29: $75.27
Silver 6/5: $67.83
There's no good reason that gold and silver would go down more than stocks like they did on Friday and have been for the past six months other than COMEX and the LBMA continuing their successful derivate suppression of precious metals as opposed to worthless fiat currencies like the U.S. dollar, the euro, yen, and pound.
The United States is alone in its demand that gold and silver not appreciate against paper currencies. This condition, more than 50 years old, is likely to persist for another number of years, which is why the suggestion to sell part of one's holdings remains a viable strategy from a short-term perspective. It is not something anybody with a generational view should perform, however, as gold and silver routinely out-perform - and outlive - fiat currencies every time. If you hold it, you own it, regardless of what the authorities have in mind.
Here are the most recent prices for common one ounce gold and silver items sold on eBay (free shipping included, numismatics excluded):
| Item/Price | Low | High | Average | Median |
|---|---|---|---|---|
| 1 oz silver coin: | 74.99 | 89.00 | 79.68 | 78.31 |
| 1 oz silver bar: | 78.03 | 90.10 | 81.73 | 81.39 |
| 1 oz gold coin: | 4485.95 | 4689.11 | 4596.25 | 4586.87 |
| 1 oz gold bar: | 4507.63 | 4587.17 | 4532.98 | 4522.00 |
The Single Ounce Silver Market Price Benchmark (SOSMPB) fell to its lowest level since December, 2025, from $86.55 on May 31, to $80.28 on June 7, a loss of $6.27 per troy ounce, well below the recent range.
WEEKEND WRAP
Boy, was the first week of June fun! Unless one was heavily exposed to momentum stocks, gold, silver, or fixed income (which wasn't as hard hit), it was something of a bummer, but, as has been the case since 2020, most of these things bounce back and in some rather large ways. Anybody who thinks this week's profit-taking dump was the beginning of the end for the stock market rally simply hasn't been paying attention. There is likely to be a dead cat bounce on Monday and resumption of stock frenzy in the week ahead. Taht pesky Fed has an FOMC meeting coming up next Tuesday and Wednesday, but the week ahead appears to be a "buy-the-dip" opportunity.
At the Close, Friday, June 5, 2026:
Dow: 50,866.78, -695.15 (-1.35%)
NASDAQ: 25,709.43, -1,121.53 (-4.18%)
S&P 500: 7,383.74, -200.57 (-2.64%)
NYSE Composite: 23,256.50, -316.27 (-1.34%)
For the Week:
Dow: -165.68 (-0.32%)
NASDAQ: -1263.19 (-4.68%)
S&P 500: -196.32 (-2.59%)
NYSE Composite: -35.67 (-0.15%)
Dow Transports: +503.22 (+2.35%)
Disclaimer: Information disseminated on this site should not be construed as investment advice. Downtown Magazine Inc., Money Daily and it's owners, affiliates and/or employees are not investment advisors and do not offer specific investment advice. All investments have risk. You should consult a professional investment advisor or stock broker or use your individual judgement when making investment decisions. By viewing this site, you hold harmless Downtown Magazine Inc., Money Daily, its owners, affiliates and employees against any and all liability. Copyright 2026, Downtown Magazine Inc., all rights reserved.
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