Full recap
Happy Friday, thought criminals. The May jobs report came in hot enough to melt whatever was left of the rate-cut fantasy, and Chair Warsh is already staffing up with ideological heavy hitters. The economy is apparently too healthy for cheap money, which is a great way to say 'you're doing fine, so stop asking for help.' Warsh's first notable hire wrote the Fed chapter in Project 2025, which is either a bold statement about institutional reform or the most on-the-nose thing to happen in central banking since Nixon closed the gold window. Either way, the vibes at the Eccles Building just got a lot more interesting. Goldman Sachs, never one to miss a pivot, quietly downgraded Hong Kong stocks and doubled down on mainland China AI hardware plays. So the trade is: skip the financial hub, buy the chips. Goldman smelled where the subsidies were going and followed the scent like a golden retriever at a barbecue. Premarket movers include Blackstone, Marvell Technology, and Palo Alto Networks, which is just the market's way of saying 'something happened, prices moved, everyone pretend they saw it coming.' Classic Friday morning theater. On the diamond, Aaron Judge has a stress fracture in a rib and probably won't be back until August. The Yankees, never content to suffer quietly, now have to answer five big questions about how to replace a man who is basically a building that also hits baseballs. The answer is: they probably cannot. Meanwhile, Ronald Acuna Jr. is someone's best home run prop bet for Friday, and the Belmont Stakes is happening at Saratoga with Kentucky Derby winner Golden Tempo looking to keep the party going. Horses running in circles for money while humans bet on them is honestly the most honest market in America right now. The connection between sports and markets this week is straightforward: the Fed cannot cut rates because the economy is too strong, and the Yankees cannot win because their captain's bones are too weak. Both situations involve powerful institutions being undone by forces they did not see coming and cannot control. Welcome to Friday.
Highlights
- Hot jobs report kills rate cuts for the foreseeable future - the economy is being punished for not being bad enough.
- Fed Chair Warsh hired the guy who literally wrote the conservative blueprint for reshaping the Fed. Nothing subtle happening here.
- Aaron Judge has a broken rib and won't return until August, which is the Yankees' version of a hot jobs report - bad news dressed up as evidence that something once worked.
- Goldman bailed on Hong Kong stocks to chase China AI hardware, proving that even the most sophisticated institutions just follow the subsidy trail like everyone else.
- Golden Tempo runs the Belmont Stakes today, and the horse betting market remains the most transparent price discovery mechanism in American finance. No earnings calls, no guidance, just hooves.
Original source links
- CNBC: Hot jobs report puts Fed cuts further out of reach as Chair Warsh faces policy tests
- CNBC: Stocks making the biggest moves premarket: Blackstone, Marvell Technology, Palo Alto Networks & more
- CNBC: Goldman Sachs cuts Hong Kong stocks in favor of mainland China AI hardware plays
- CBS Sports: Free MLB home run picks June 5: Ronald Acuna Jr. among expert's best bets for Friday
- CBS Sports: PrizePicks promo code and app review: Play $5, Get $50
- CBS Sports: When will Aaron Judge be back? How can Yankees replace him? Answering five big questions about his injury