Market Brief — June 5, 2026

US indices weakened after May nonfarm payrolls came in far stronger than forecast, with DJIA down 1.35%, SPX falling 2.64% and ^IXIC dropping 4.18%, while the Nasdaq 100 fell roughly 3%. In Europe, DAX fell 0.75% and FRA40 slipped 0.32% as higher yields and firmer rate expectations weighed on stocks, while UKX was roughly flat, up 0.07%. In Asia, 000001.SS finished unchanged at 0.00% with volume of 1,867,348,260, offering little offset to the global equity pullback.

US sector performance was mixed, with technology VGT down 6.14% and consumer discretionary XLY off 2.05%, while consumer staples XLP gained 1.71%, utilities XLU rose 0.93%, real estate VNQ added 0.72%, healthcare XLV rose 0.61% and financials XLF rose 0.21%. Basic materials XLB declined 1.92%, energy XLE lost 1.84%, industrials XLI fell 1.12% and communication services XLC fell 1.27%. Single-stock moves included COO up 8.58%, ABM 6.67%, ARCB 6.17%, NP 5.86% and ARGX 5.82% among gainers, while PL fell 26.10%, POET 23.04%, ALM 21.13%, TE 19.13% and CHRN 18.54%.

US May nonfarm payrolls increased by 172,000, leaving the unemployment rate at 4.3% and average hourly earnings up 0.3% month-on-month, while revisions to March and April added a combined 93,000 jobs. The jobs surprise lifted US yields, with the 10-year Treasury around 4.5% and 20- and 30-year yields above 5%, while CME FedWatch data showed year-end Fed cut odds falling to about 1.1% as the Federal Reserve kept the funds rate at 3.50%–3.75% and minutes suggested additional firming is possible if inflation stays above 2%. Global indicators were mixed: the WTO Goods Trade Barometer printed at 101.7, with electronic components at 105.5 and air freight and container shipping at 102.2 and 102.4, pointing to goods trade above trend even as stronger US data and higher yields pressured commodities, with crude around $90–$94 per barrel and gold at $4,314–$4,462 per ounce.

Lululemon (LULU) cut full-year sales guidance to $11.0–$11.15 billion from $11.35–$11.50 billion and narrowed EPS guidance to $10.95–$11.15 from $12.10–$12.30, citing weaker product launches, negative commentary and a 4.1 percentage-point drop in gross margin to 54.2%, with Q2 gross margin expected to fall by roughly 410 basis points. Azorra's firm order for 15 Embraer E195-E2 jets plus purchase rights for 15 more lifted Embraer's shares about 5% intraday, took Azorra's firm E2 commitments to 54 aircraft and pushed total E2 program bookings above 500 jets. Oil futures declined after Oman said operations at the Mina al Fahal export terminal were normal following reports of an explosion near the port, with Brent settling at $93.09 per barrel (down $1.94 or 2.04%) and US WTI at $90.54 (down $2.50 or 2.69%). Bay Club completed its 12th Washington State acquisition, continuing its build-out of the greater Seattle market. Legato Merger Corp. III shareholders approved a business combination with Einride, and Cove Capital Investments announced the acquisition of a grocery-anchored shopping center in Princeton, Kentucky.