CNBC — 2026-06-04#

Lead Story#

The S&P 500 snapped its nine-day winning streak as escalating geopolitical tensions between the U.S. and Iran spooked investors, prompting a sharp rotation out of semiconductor and AI-linked stocks.

Markets & Economics#

Oil prices exhibited extreme volatility this week, with West Texas Intermediate and Brent crude pulling back over 3% on Thursday following an agreed-upon ceasefire between Israel and Lebanon, alongside reports that President Trump is hesitant to resume full-scale war with Iran. Equities broadly slumped on the geopolitical risk, with the Dow shedding over 620 points and the S&P 500 dropping 0.74% as traders pared risk. In the housing sector, rising mortgage denials and high interest rates have led sellers to pull properties at the fastest pace since 2020, as covered by CNBC’s Diana Olick. Meanwhile, markets remain extremely cautious ahead of Friday’s nonfarm payrolls release, where economists project a meager gain of 80,000 new jobs.

Business & Earnings#

Broadcom plunged 15% after missing revenue estimates and failing to raise its $56 billion full-year AI chip sales target, triggering a broader sell-off across the semiconductor space. Cybersecurity giant CrowdStrike also fell nearly 10% on lackluster Q2 revenue guidance of $1.44 billion, despite a strong top-and-bottom-line beat. Elsewhere, Lululemon Athletica slashed its full-year outlook, citing sluggish product launches and negative media commentary, sending shares tumbling in extended trading. On the capital markets front, SpaceX officially priced its upcoming IPO at $135 per share, aiming for a staggering $1.77 trillion valuation that could soon mint CEO Elon Musk as the world’s first trillionaire.

Investing & Commentary#

Jim Cramer sees Broadcom’s post-earnings plunge as a classic buying opportunity, advising investors to let the sellers wash out for a day or two before initiating positions. ARK Invest’s Brett Winton argues that SpaceX’s Starlink business alone easily supports its $1.77 trillion valuation, pointing to massive AI bandwidth demand and future launch scale. On the defensive side, Barclays traders are warning clients to buy index puts to protect against a tech-led pullback, highlighting that semiconductors now comprise a dangerously concentrated 19% of the S&P 500.

Also Worth Watching#

SpaceX Investors Get Better Margin of Safety (CNBC): Morningstar’s Owens explains why waiting out the initial IPO volatility might benefit SpaceX buyers.
Starlink Alone Justifies Valuation (CNBC): ARK Invest’s Brett Winton outlines the massive revenue potential of SpaceX’s satellite internet division.
Andrew Yang’s Pitch to Tax AI (CNBC): Former presidential candidate Andrew Yang advocates for taxing robots and artificial intelligence instead of human workers.
Prologis CEO on Logistics (CNBC): A discussion on navigating the industrial real estate business in the current macroeconomic environment.
House Passes Resolution to Curb Trump’s War Powers (CNBC): The GOP-led House votes to block President Trump from continuing military action against Iran without congressional approval.