I) USA
US equities pulled back on Wednesday after a remarkable run, with the S&P 500 falling 0.74% to
7,553.68 — snapping a nine-session winning streak, its longest since 1995. The retreat was driven by hotter-than-expected economic data that revived rate-hike fears, alongside a surge in Treasury yields and oil prices. Broadcom's disappointing AI chip revenue forecast added further pressure, with its shares
falling ~14% in extended trading, dragging Nasdaq 100 futures down ~1% on Thursday morning. Despite the pullback, the S&P 500 is up +10.3% YTD and the Nasdaq 100 +21.1% YTD, underpinned by an AI-
driven earnings supercycle — JPMorgan forecasts 20% S&P 500 earnings growth for 2026. Sentiment remains cautious but improving: the AAII bull-bear spread narrowed to -0.7 from -6.3 the prior week.
II) EU
European equities are holding up relatively well, with the Stoxx 600 up 0.2% on Thursday morning, led by retail and consumer stocks after Remy Cointreau reported better-than-expected results. The Euro Stoxx 50 is up +5.0% YTD, the DAX +1.9% YTD, and the CAC 40 +1.1%. Goldman Sachs recently raised its 12- month Stoxx 600 target to 660 from 625, though it notes European return forecasts remain below those for the US and Asia. Within Europe, the CAC 40 is a notable laggard — virtually flat YTD — weighed down by weak French macro fundamentals and unfavorable sector composition, having underperformed since the Iran conflict began. A notable index change: Hochtief will join the DAX, replacing Porsche Automobil Holding, effective June 22, reflecting the infrastructure and data center spending boom.
III) UK
The FTSE 100 is up +3.6% YTD, the FTSE 250 +3.3% YTD, and the FTSE All-Share +3.6% YTD. The FTSE 100
currently sits around 10,332–10,373, approximately 4.9% below its record close of 10,910.55 hit on February 27, 2026. On Thursday, the index opened 0.2% lower, with energy the weakest sector (-1.2%) and consumer cyclicals the brightest spot (+0.7%), while financials rose 0.45%. Aberdeen Group, Computacenter, and Investec will join the FTSE 100, replacing Berkeley Group, Mondi, and Rightmove, which drop to the FTSE 250. Energy costs remain a key concern for UK businesses, with 62% reporting at least some worry about energy prices — rising to 73% for firms with 10 or more employees.
IV) Asia
Asian markets sold off broadly on Thursday, with the MSCI Asia Pacific Index falling as much as 1.8% — its worst session since May 15 — as Broadcom's disappointing AI chip revenue forecast dampened enthusiasm across the region's semiconductor-heavy indices. Fresh US military strikes on Iran's Qeshm
Islands added a further geopolitical headwind. The KOSPI is the world's best-performing major index YTD by a wide margin, but saw a sharp 1.8% pullback to 8,639.41, snapping a three-session winning streak, as chip stocks retreated and foreign investors sold a net 7 trillion won of KOSPI stocks. Foreign investors turned net sellers of Japanese equities for the first time in two months in the week ended May 29, ofloading ~¥395 billion, amid growing AI bubble concerns.
