Good morning, investors. The May jobs report is due this morning, and economists are looking for 80,000 new jobs in the month, a slowdown from the roughly 150,000 seen on average the prior two months.

But, as we have said for over a year, it’s unlikely that even a bad print on jobs will have any meaningful impact on current bull rally.

AI is the only input that matters these days.

No wonder the S&P 500 is on track for its 10th positive week in a row.

You know a bull market is healthy when its leaders get sold but it breaks records anyway.

That’s exactly what happened Thursday.

The Dow closed at its 15th all-time high of the year even as traders dumped the chip and AI names that have carried this rally all year. Banks, health insurers and small caps did the heavy lifting that the mega-caps usually handle.

That showed up with the equal-weight S&P 500 hitting its highest level ever.

The tech-heavy Nasdaq finished slightly lower on the day, while the S&P 500 added 0.4% and closed just shy of its own peak.

Broadcom triggered the sell-off for Big Tech.

The chipmaker missed on revenue and fell about 13%, and traders treated it as a reason to trim anything with AI exposure, dragging AMD down more than 3% and the broad semiconductor group with it.

Nvidia was the only positive holdout, climbing almost 2%.

Everything else in tech sat the day out.

Yet UnitedHealth rose more than 5%, JPMorgan gained 3%, and the rotation fanned out so widely that 362 stocks in the S&P 500 rose while just 140 fell.

Even the small-cap Russell 2000 climbed sharply.

To be sure, none of that means the market is done being “top heavy.”

Breadth has actually been narrowing over the last several weeks, with barely half the S&P above its 50-day average.

That suggests Thursday’s session was more of a shift than a true change of pace.

The bull case to watch for next hinges on whether healthcare and financials can keep rising even if the chip and AI names resume their rally.

Even if just for a single day, it’s a good sign we know it’s possible.

🚀 The S&P 500 won’t change its rules for SpaceX. S&P Dow Jones Indices said late Thursday it won’t fast-track the inclusion of the mega IPOs this year, and that it will maintain its rules that newly listed companies must trade on an exchange for at least a year. (WSJ)

📉 Broadcom shares fell more than 15% after the chipmaker failed to raise its annual AI chip forecast. The selloff wiped out roughly $320 billion in market value and dragged Micron, ARM and AMD down with it. (CNBC)

📊 Weekly jobless claims jumped to the highest level since February. Filings rose by 13,000 to 225,000 in the week ended May 30, exceeding the 213,000 expected by economists ahead of Friday's payrolls report. (Quartz)

🏦 Kansas City Fed President Schmid said the central bank's choice now is between holding rates steady or hiking. He doubled down on the hawkish stance and effectively ruled out a cut as the next policy move. (Reuters)

I sat down with Eric Wallerstein, chief macro strategist for Clocktower Group and a former advisor at the Fed and the White House, to unpack the best trades for the current geopolitical and macro backdrop, what investors should know about the Iran conflict and Kevin Warsh, and more.

Tune in on Spotify, Apple Podcasts, or YouTube.

🗓 June 5, 1933: Congress passed House Joint Resolution 192, voiding the gold clauses in private contracts and effectively ending the gold standard for domestic debt.

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