Morning Juice – US Session Prep (4th June)

Sentiment
Global equities pulled back as investors started to question whether the AI-driven rally had become too stretched, with Broadcom’s outlook acting as the trigger. Nasdaq futures fell more sharply than the broader market after Broadcom dropped in premarket trading because its AI semiconductor revenue outlook failed to clear very high expectations. The weakness spread across tech, with CrowdStrike also falling despite raising revenue guidance, which shows how demanding the setup has become for AI-linked names.

The bigger message is not that the AI story is broken, but that expectations had become extremely elevated after such a powerful run to record highs. Investors are starting to take some profit, and the rally is being tested now that simply good results are no longer enough. Outside tech, oil easing helped a bit, Treasuries stabilised, and the dollar softened slightly, but the broader tone still reflected weaker risk appetite, with Bitcoin also extending its decline.

Docket
08:30 ET
US Weekly Jobless Claims
Initial Claims – Forecast: 215k | Prior: 215k | Range: 225K / 192K
Continued Claims – Forecast: 1.78M | Prior: 1.786M | Range: 1.8M / 1.733M

Speakers
08:30 ET
Fed’s Barkin [FOMC Non-Voting Member] speaks in a Fireside Chat at the Belmont Country Club.
Text: No. Q&A: Yes, moderator and audience

10:00 ET
Fed’s Bowman [FOMC Voting Member] testifies before the House Financial Services Committee at a hearing on oversight of prudential regulators.
Text: Yes. Q&A: Yes, lawmakers.

10:00 ET
US Treasury Sec. Bessent Testifies to Congress

11:40 ET
BoE’s Governor Bailey delivers a speech at the Investment Association annual conference.

13:10 ET
Fed’s Daly [FOMC Non-Voting Member] participates in a conversation at the Bloomberg Technology Summit, moderated by Caroline Hyde.
Text: No. Q&A: Yes, moderated.

15:00 ET
Trump makes an Announcement on Coal

Good luck!