6/8/26: Chips Stocks Hammered, Trump Floats Gov Stake In AI Companies

Turning now to the stock market.

Absolutely insane things happening.

There are drops, there are increases, but overall, the shakiness over the last, uh, couple of days from Friday to Monday reveal potential major weaknesses in the US economy, which lead us directly into our next segment with Jeff Stein on AI.

But let's start with D6, actually.

Let's put it up here on the screen.

This was written over the weekend.

"The market route leaves Wall Street bracing for rockier times.

Investors have to confront the challenges from the latest inflation reading and SpaceX IPO in the days ahead.

Specifically, they show stocks, bonds, gold, Bitcoin.

Investors enter the new week battered by a market sell-off that left very few places to hide.

The route followed Friday's stronger than expected jobs report, which sheared 4.2% off the Nasdaq, sending investors racing to increase bets that the Federal Reserve will raise interest rates by year end, and sparked a bond slide that lifted yields on treasuries to their highest level since early 2025.

That pressured shares of multinational and smaller domestic companies alike, and gold fell to its lowest levels on the year.

The tumble drew warnings from Wall Street that more turmoil lies ahead." Ray Dalio of Bridgewater said this: "Friday was an important move that highlights the central role that the global craze for artificial intelligence and other related stocks has played in the record run.

With valuations stretched and yields rising, bonds are now much more attractively priced than stocks, leaving the market in a precarious position.

Market and economic concentration is in one new sector that is highly volatile and risky, is super popular among unsophisticated investors," quote, "That is classic bubble stuff." So the two f- things that caused the Nasdaq and stock market to go down significantly on Friday were the jobs market that came in a little bit stronger than normal.

Now, why would that matter? Because it would mean that they believe that thus the Federal Resa- Reserve would have to raise interest rates.

Everything from the AI stocks to the general rise had actually previously been bet on the fact that the Fed was gonna lower interest rates, or at the very least, keep them the same.

So when that reading came in, they immediately bet that the interest rate was gonna go up.

That's already crushing now multiple years of generally high interest rates.

How does that affect AI? Basically, from what I've been able to gather, a lot of it is based on the construction and the CapEx costs for borrowing, because they have to borrow all this money to build all these new data centers and for all these other things.

Money being more expensive increases the cost, and it also demonstrates, as he was talking about with the bonds, making it less attractive to bet on these ultra-risky high investments.

Like, I mean, you got Micron out there up, like, 1,000% and all these other chip companies which are up, you know, by boatloads.

AMD is up by 200%.

Nvidia's up, uh, God only knows how much.

Google, Meta, everybody, they all got hammered largely either because of the bond issue, interest rates, and then sometimes things just kind of break.