Crypto News: AI stocks lose favor

Good morning. The AI trade is wobbling as investors pull back from tech. SpaceX fever is intensifying despite a setback to its S&P 500 ambitions. And we’re looking ahead to Apple’s high-stakes AI reset. Listen to the day’s top stories.

— Hellmuth Tromm

Market Snapshot
S&P 500 Futures	7,571.25	-0.4%
Nasdaq 100 Futures	30,218.00	-0.9%
Bloomberg Dollar Spot Index	1,202.44	-0.2%
Market data as of 06:49 AM ET. Data is subject to provider delays.	Your watchlist

After weeks of gains, investors are taking money off the table. The Nasdaq is leading the way lower as investors rotate out of tech, a sharp pullback from the AI-fueled rally that’s dominated the year to date. The risk-off mood is also hitting overseas markets such as South Korea. Oil steadied as hopes for US-Iran talks offset tensions in Lebanon after Hezbollah rejected a ceasefire proposal.

It’s also a big jobs report day on Wall Street. US nonfarm payrolls probably posted solid gains in May, suggesting hot March and April readings reflected underlying momentum rather than a fleeting rebound. A weak print has the potential to force a painful rethink in Treasury markets, where investors are positioned for future Federal Reserve rate hikes.

One small setback for SpaceX: S&P Dow Jones Indices rejected proposals to fast-track mega-cap IPOs into major indexes, meaning the company will need to wait at least a year after listing to join the S&P 500. Analysts are still excited, forecasting 100-fold AI revenue growth by the end of the decade as Elon Musk left investors starstruck at a JPMorgan event. But it looks like Chinese investors will have to sit it out on national security grounds.

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Xavier Becerra is projected to advance in the California governor’s race after gaining 26% of votes counted. The next question is who’ll face the former congressman and US health secretary in November’s general election: British-born Republican Steve Hilton or fellow Democrat Tom Steyer. The winner of the second slot may not emerge for days as mail-in ballots arrive, drawing fierce criticism from President Trump.

The 2026 World Cup begins next week across North America, but controversy has become its own main event. Sky-high ticket prices, eye-watering travel costs and concerns over Trump administration immigration policies are keeping some fans away. Participating teams face their own challenge as a quarter of matches will take place in potentially punishing heat.

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Deep Dive: Apple’s AI Turnaround

Apple’s AI reboot starts on Monday. The iPhone maker will unveil a new strategy at its Worldwide Developers Conference, aiming for redemption two years after its first AI rollout was plagued by subpar technology and delayed features.

Siri will take center stage as new AI tools and the version 27 software generation is rolled out, in line with last year’s naming change.
Unlike 2025’s introduction of the Liquid Glass interface, the new operating systems will emphasize performance, stability and AI integration.
Features aimed at business users and emerging markets will be paired with software changes that support a future foldable iPhone.
The event begins Monday at 10 a.m. local time at Apple’s Cupertino headquarters. Check out our live coverage on Bloomberg.com.

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