US markets brace for tonight's jobs report as a great rotation rattles the chip trade.
Last night (June 4), Wall Street closed a session built on rotation. The Dow set a fresh record, up 1.73%, while the Nasdaq slipped on a sharp selloff in chip names.
The trigger was Broadcom. Its stock fell 12.6% even after a quarterly earnings beat. Management did not raise its annual AI-chip sales target, and that was enough to disappoint investors.
Money rotated out of crowded AI trades and into Health Care, Financials, and Real Estate. Tonight, all eyes turn to the US jobs report at 8:30am ET (7:30pm WIB).
| Stock | Movement | What to Watch |
|---|---|---|
| AVGO | -12.6% ($418.91) | AI-chip guidance held flat, triggering a sector selloff |
| NVDA | +1.94% ($218.66) | Held up while peers fell, can it keep diverging? |
| AMD | -4% (~$521) | Dragged by Broadcom sentiment, watching for a floor |
| UNH | +5% | Raised dividend 5%, leader of the defensive rotation |
| JPM | +3% | Financials become the rotation destination from tech |
The drop in Broadcom (AVGO) dragged Intel (INTC) down 3% and AMD (AMD) down 4%. Notably, Nvidia (NVDA) actually rose, suggesting the selloff was about stretched expectations, not a broad AI-industry problem.
UnitedHealth (UNH) climbed 5% after lifting its dividend and led the Dow. JPMorgan (JPM) gained 3% on financial-sector strength. Walmart (WMT) edged higher too, a healthy defensive signal.
Consensus expects around 100,000 jobs added in May, with unemployment steady at 4.3%. A soft number could revive hopes for a rate cut.
US futures eased slightly ahead of the jobs data. Markets are in wait-and-see mode, since an in-line number would likely be taken in stride. Watch the wage figure, which could move the rotation winners.
The 10-year Treasury yield held near 4.48%. WTI crude softened toward $95 a barrel.
Tonight's message is simple: money is not leaving the market, it is moving. The Dow's record and defensive-sector leadership are signs of a healthy market, not panic.
If you are watching your portfolio, tonight is the moment to see whether the rotation continues or chip stocks start to recover. What stocks are you watching tonight?
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