EB Daily Market Report - Friday, June 5, 2026

Dear Members:

The jobs report this morning came out much stronger than expected, all but guaranteeing no rate cuts by the Fed and instead making rate increases more likely. Accordingly, the S&P and NASDAQ are down substantially.

The selling can't surprise traders after the non-stop rise in stocks since the March Low. The question is whether we will see additional selling in the coming days or if traders will step in, as they have for a long time, and buy the dip?

Even though the $VIX has risen today it's not by much; it remains in the low 16's, showing little fear. And though government bond yields have risen as well the 10 year Treasury bond is well below its peak of 4.68 on May 19.

For the first time since early April the NASDAQ has dipped below its 20 day moving average, currently at 26,350. If that happens, selling in the tech sector could pick up with the first level of price support near 26,000. But the S&P is holding above its 20-day average, currently at 7464 which is a key level to watch.

Let's watch how the market closes while staying cautious into the weekend. Tom will be back with his Weekly Market Report on Monday.

At your service,

John Hopkins