On Friday, stocks fell as investors reacted to the May jobs report, which showed non-farm payrolls increased by 172,000, exceeding expectations, while unemployment remained steady at 4.3%. This economic data led to a rise in Treasury yields, raising concerns about a possible interest rate hike later this year, which could negatively impact stock prices.
The Nasdaq dropped 1.7% and the S&P 500 fell nearly 1%, marking a potential end to its nine-week winning streak. Jim Cramer highlighted this market pullback as a 'cooling off period' that could be advantageous for investors looking to buy undervalued chip stocks, specifically mentioning Intel as a good buying opportunity after its 6% drop on Friday.
The decline in chipmakers was exacerbated by Broadcom's disappointing guidance, which caused a 20% drop in its stock over the week. Meanwhile, investors are shifting towards defensive sectors like health care, with stocks such as Johnson & Johnson, Eli Lilly, and Cardinal Health seeing gains.
CrowdStrike's stock continued to decline, falling 3.4%, as CEO George Kurtz indicated that expectations for earnings boosts from Anthropic's AI model are premature. Cramer sees this as a potential entry point for new investors in CrowdStrike, anticipating a strong upcoming quarter.
Additionally, Apple is set to unveil a significant upgrade to Siri at its Worldwide Developers Conference, which is expected to positively impact its stock. The upcoming SpaceX IPO is also a point of caution, as Cramer warns that investors might be selling existing holdings to accommodate new IPOs, including those of Anthropic and OpenAI later this year