Finance

High-profile technology and cybersecurity companies reported mixed results, weighing heavily on sector performance. Broadcom shares plunged 13% in after-hours trading after its artificial intelligence chip forecast failed to meet elevated market expectations, while CrowdStrike fell 11% due to increased investment costs. Conversely, Costco reported strong consumer resilience with a 12.5% increase in comparable sales for May.

The ISM Services PMI rose to 54.5 in May, exceeding expectations and indicating robust expansion in business activity and new orders. However, the report also highlighted significant inflationary concerns, with price pressures reaching their highest levels since August 2022 due to rising fuel costs. Additionally, while overall hiring was broad-based, service sector employment contracted for a third consecutive month as firms maintained hiring freezes.

Digital assets experienced a sharp sell-off, with Bitcoin dropping over 6% to reach its lowest opening price since late March at approximately $65,700. Total market liquidations surpassed $1.1 billion amid aggressive deleveraging and a record ten-day streak of net withdrawals from spot Bitcoin ETFs. Investors appear to be rotating out of riskier assets like Ethereum, which fell below $1,900, in favor of more stable commodities or high-performing technology alternatives.