Macro Minute: Week of June 8, 2026

Let’s talk about the market drop on Friday. There are many culminating catalysts for it. We had Broadcom earnings beat expectations, but consensus was expecting higher guidance on AI demand. This sparked a selloff in all chip stocks, especially in the South Korean Kospi, that is at elevated levels because of legislative changes encouraging local citizens’ participation in the Kospi. Semiconductor stocks have been on an absolute tear for the last couple of months leaving them vulnerable to a sharp reversal. Google, who could raise money from the bond market, is choosing to issue equity for AI development. At the same time, there are a number of IPOs coming from the likes of SpaceX, Anthropic, and OpenAI. Index rules are changing to allow SpaceX to enter the index right away without being public for a certain amount of time. In addition, the ongoing Iran conflict is adding pressure to the global system as a whole, and the hot jobs number for May is further pressuring the financial system. The culmination of these factors add stress. The result is a sell off, causing liquidity to dry up, margin calls, and then, further selling.  

What is a long-term investor to do on days like these?  I would argue nothing. Hold a portfolio that you like for the long term and know there will be days like this. Don’t have too much risk on. Understand that when you have a liquidity draining event, all things go down, except the dollar. The dollar usually goes up in these cases because it is the global reserve currency and everyone sells securities to hold dollars. These days hurt, but it is the price of admission to the event that is compound interest. The emotional journey is to not get too high when the market is up or too low when the market is down. Look out over a longer time period and don’t focus on the day to day. Know that this too shall pass.  

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