Daily News 5th June 26
Daily News
South Korea Stocks Plunge 5% as Wall Street AI Sell-Off Spreads to Asia; Dow Surges 875 Points to Record Close as Investors Rotate from Tech; Gold Falls Below $4,450; WTI Holds Near $93 as Diplomatic Hopes Temper Oil Rally
05 June 2026
Today in Brief
South Korea stocks plunged Friday, leading regional losses, as Wall Street's overnight tech sell-off spread into Asia — the Kospi fell 5.01%, with Samsung Electronics and SK Hynix dropping 4.34% and 7.57% respectively. On Thursday, the Dow Jones surged 874.86 points, or 1.73%, to a record close of 51,561.93 as investors rotated out of chip names into non-tech stocks; the S&P 500 rose 0.41% to 7,584.31 while the Nasdaq slipped 0.09% to 26,830.96. Broadcom's shares slumped more than 14% after its Q2 revenue of $22.19 billion missed expectations and the company reiterated rather than raised its $100 billion AI revenue forecast for fiscal 2027. Gold fell below $4,450 an ounce Friday, on track for a weekly decline exceeding 2%, as Middle East uncertainty kept inflation and rate concerns elevated. WTI crude held around $93 per barrel after losing more than 3% in the prior session, supported by hopes for a diplomatic resolution; the U.S. benchmark remains up more than 6% for the week. President Trump said peace negotiations were nearing their final stage and expressed willingness to meet Iran's Supreme Leader Ayatollah Mojtaba Khamenei if a deal is reached. However, Iranian Foreign Minister Abbas Araghchi said no meaningful progress had been made, and Iran-backed Hezbollah rejected a U.S.-mediated ceasefire proposal for Lebanon. India's RBI held rates at 5.25%, flagging the Middle East "geopolitical impasse" and escalating energy costs as key risks. Nearly 40 ships stranded in the Persian Gulf have exited through the Strait of Hormuz over the past three weeks, coordinating quietly with the U.S. Navy. Amazon unveiled an upgraded AI-powered Proteus warehouse robot as part of a €10 billion European fulfilment push. Pinterest signed a $4 billion cloud deal with AWS through 2031. Senior U.S. officials are reportedly in preliminary talks with major AI companies about potential government equity stakes, as both OpenAI and Anthropic prepare for IPOs.
South Korea stocks fall 5% as tech heavyweights follow plunge in Wall Street's AI-linked names
South Korea stocks plunged Friday, leading losses in the region, as the slump in Wall Street tech names overnight spread into Asia, dragging benchmark indexes lower. The Kospi was last down 5.01%, with heavyweights Samsung Electronics and SK Hynix dropping 4.34% and 7.57%, respectively. The small-cap Kosdaq index fell 4.14%. In a move that could pressure South Korea's tech sector further, the country's labor minister urged its biggest technology companies to distribute more of the gains from the AI-driven semiconductor boom with workers and suppliers, saying record profits risk exacerbating income inequality.
Dow surges nearly 900 points for record close as investors rotate away from tech names
The Dow Jones Industrial Average rallied to a fresh all-time high on Thursday, while the Nasdaq Composite underperformed as investors appeared to rotate out of chip names in favor of non-tech stocks. The 30-stock Dow jumped 874.86 points, or 1.73%, for a record close of 51,561.93. The Nasdaq lost 0.09% and ended at 26,830.96, while the S&P 500 rose 0.41% to 7,584.31. UnitedHealth led the Dow higher, rising more than 5%. JPMorgan Chase and Walmart added to the benchmark's advance, climbing 3% and nearly 1%, respectively. Non-tech names outside of the Dow such as Costco and Eli Lilly gained around 1% and more than 4%, respectively. The rotation was sparked by a sell-off in Broadcom that led investors to reassess their concentrated exposure to AI-linked chip stocks.
Gold fell below $4,450 an ounce on Friday and was set for a weekly decline
Gold fell below $4,450 an ounce on Friday and was set for a weekly decline of more than 2%, pressured by ongoing uncertainty in the Middle East that kept inflation risks and interest rate concerns in focus. President Donald Trump said peace negotiations were approaching their final stage and is reportedly reluctant to reenter full-scale war with Iran despite recent tensions. However, Iranian Foreign Minister Abbas Araghchi said there has been no meaningful progress in the discussions. Iran-backed Hezbollah also rejected a U.S.-mediated ceasefire proposal between Israel and Lebanon, adding to doubts over efforts to de-escalate regional hostilities.
WTI crude futures held around $93 per barrel on Friday
WTI crude futures held around $93 per barrel on Friday after losing more than 3% in the previous session, weighed down by hopes that the U.S. and Iran could still find a diplomatic solution to end the war and reopen the Strait of Hormuz. President Donald Trump has reportedly been hesitant to reengage in a full-scale war with Iran despite recent confrontations, and would only consider ending the current truce if Tehran kills American troops. Even so, the U.S. oil benchmark is still up more than 6% for the week, as negotiations between Washington and Tehran have yet to show meaningful progress, while Israel's ongoing military operations in Lebanon is becoming a key obstacle. Iran-backed Hezbollah rejected a U.S.-mediated ceasefire proposal between Israel and Lebanon, although President Trump said the group had approached the White House to discuss ending the hostilities.
India's central bank keeps rates steady at 5.25% — flags Middle East worries, currency pressures
India's central bank on Friday held interest rates at 5.25% at a time when surging global energy costs have hammered its currency, while the Iran war risks accelerating inflation. The Reserve Bank of India was widely expected to keep rates steady, as per economists polled by both Reuters and CNBC. RBI Governor Sanjay Malhotra said in his statement that the "monetary policy has turned more cautious" as the global economic outlook remains clouded by the "geopolitical impasse" in the Middle East. He added that "sharply escalating energy prices and global supply chain disruptions continue to hinder economic activity." In an attempt at shoring up the currency, Prime Minister Narendra Modi last month urged citizens to pause gold purchases, conserve fuel, and avoid overseas travel.
Trump says he could meet Iran's supreme leader 'if it was to make a deal'
President Donald Trump on Thursday said he would be "honoured" to meet Iranian Supreme Leader Ayatollah Mojtaba Khamenei. The U.S. president said he would meet the Iranian leader if a deal is reached to end the U.S.-Iran war, which has dragged on into its fourth month. Trump was taking questions from reporters in the Oval Office after making an announcement about coal. "If we make a deal, it's possible that I would meet," he said. "I'd be okay with that." Khamenei was named the supreme leader in Iran after his father, Ayatollah Ali Khamenei, was killed on the first day of fighting.
Ships stranded in Persian Gulf quietly coordinate with U.S. Navy to exit Hormuz
Nearly 40 ships previously stranded in the Persian Gulf have exited through the Strait of Hormuz over the past three weeks as vessels quietly coordinate with the U.S. Navy, according to Lloyd's List Intelligence. Some shipowners are submitting their transit plans to the Naval Cooperation and Guidance for Shipping group in Bahrain, said Richard Meade, editor-in-chief of Lloyd's List, in a briefing Thursday. The assumption is that the U.S. Navy is providing limited assurances that it will intercept incoming threats against commercial ships, Meade said. "Transit decisions remain solely with ship operators," Meade said. "Industry operators tell us that they are not being centrally coordinated."
India expands more government bonds to full foreign ownership
The Reserve Bank of India has expanded the category of bonds eligible for full foreign ownership, Governor Sanjay Malhotra said in his monetary policy address. The list of bonds will now include all new issuances under the 15-, 30- and 40-year tenures, Malhotra said. Previously, bonds with a tenor of as many as 10 years could be included in the so-called Fully Accessible Route category. Limits pertaining to short-term investment, concentration and individual securities on FPI investment under the general route are being removed.
Amazon unveils new AI warehouse robot in $12 billion Europe push
Amazon on Thursday unveiled an upgraded AI-powered mobile robot for its warehouses that can respond to conversational prompts, as part of a €10 billion ($11.6 billion) investment in its European fulfilment network. The Seattle-based e-commerce giant showcased the next-generation Proteus robot at its "Delivering the Future" event at its Dartford fulfilment centre east of London, as it works to speed up deliveries. The current Proteus, deployed at 25 U.S. sites, operates only in dock areas, moving carts weighing up to nearly 400 kg (882 lbs). The new version, due in Europe in the first half of 2027, can operate across warehouse floors and marks a shift in how employees interact with robots. "You tell it what needs to be done. It figures out the priority, the route, the timing," said Scott Dresser, vice president of Amazon Robotics.
Broadcom set to shed $300 billion in value as AI results fail to impress
Broadcom shares slumped more than 14% on Thursday, dragging chip peers lower, after the company's results fell short of lofty expectations around demand for its custom AI chips business. Its crucial role in helping design in-house processors of firms like Alphabet and Meta that serve as alternatives to Nvidia's costly chips has made Broadcom one of the biggest winners of the AI boom. After years of treading water, its stock has jumped more than eightfold since ChatGPT's 2022 launch. But Broadcom faces tougher competition and its eye-watering gains have left little room for error, analysts said, adding the decision to reiterate, rather than raise, its $100 billion AI revenue forecast for fiscal 2027 disappointed investors. Its second-quarter revenue of $22.19 billion also missed expectations, while its current-quarter AI chip sales forecast of $16 billion was slightly below Wall Street estimates.
Pinterest deepens Amazon partnership with $4 billion cloud deal
Pinterest said on Thursday it would pay Amazon Web Services $4 billion for cloud services through 2031, as the social media company strengthens a long-term partnership with its largest-ever deal. Shares of Pinterest rose nearly 6%, while those of Amazon were up 1.5%. Amazon's cloud computing unit will provide Pinterest its custom chip processors, including Graviton and Trainium, to help scale its AI initiatives. "This expanded commitment with AWS gives us the compute flexibility, hardware optionality, and infrastructure efficiency to accelerate our AI vision," Pinterest's Chief Technology Officer Matt Madrigal said in a statement.
US officials eye government stakes in AI companies, NOTUS reports
Senior U.S. officials held preliminary discussions with major AI companies about the potential for the government to buy some shares in their firms, digital news outlet NOTUS reported on Thursday, citing three people familiar with the matter. While the planning is ongoing and details are in flux, discussions have centered on having the firms voluntarily cede the shares to the government, the report said. The returns on the investment could then be directed to public purposes, such as distributing a dividend payment to all American households, the report said. The report comes as OpenAI and Anthropic prepare for blockbuster initial public offerings. OpenAI is preparing to confidentially file for an IPO, Reuters previously reported, while Anthropic, which makes Claude, confidentially filed for a U.S. IPO on Monday.
