The tenth time was the charm; the market falls after 9 weeks.

1️⃣ Tenth time is the charm, the market falls after 9 weeks

The music hasn't stopped, but it seems like the Crazy Hour is over and there are people falling asleep in the chairs. The market retreated after 9 consecutive very green weeks. This was the longest positive streak since 2023.

This is how the 3 representative indexes closed from Thursday to Friday's close (a single day):

• Nasdaq -4.8%

• S&P 500 -2.58%

• DJIA -1.35%

The truth is that we remain very high so far this year, and personally we are even relieved to see that the stock market is not living solely on euphoria... We already know how those stories usually end. 

Clearly, technology was the sector with the largest correction falling 6.66%, and semiconductors the industry with one of the hardest hits. Although money is not staying only in cash, Financials and Healthcare have been appreciating.

But what was the reason for the fall? Well, it is directly related to the second news of the week, so keep reading. 

💡 What you should know: This could be just the first round of profit-taking by investors since they began grasping the reality of higher interest rates for longer, as they had done nothing but buy. 

2️⃣ May jobs exceeded expectations by 100%

On Friday, the May jobs report was published and, to the surprise of analysts who predicted a definitive paralysis, 172,000 jobs were created in the United States, double the consensus of 86,000.

The unemployment rate remained solid and unchanged at 4.3%.

To understand the technical drama of the stock market crash: the labor market is part of one of the 2 mandates of the Federal Reserve, which uses these employment numbers as a guide to conduct its monetary policy. A “strong” labor market with an unemployment rate of ~4% allows them to raise or keep interest rates high to tackle inflation. 

The Fed's goal is to promote maximum employment and price stability. In practice, price stability is usually interpreted as inflation near 2% annually in the long term, while it does not have a fixed unemployment goal because "maximum employment" changes with economic conditions, but is normally expected to be seen at around 4%. When inflation is high, raising rates can help lower it, although it can also cool the labor market. When employment weakens, lowering rates can support economic activity, although if done too much it can increase inflation.

Based on the current report, there is no reason to believe that the Fed is going to lower rates as the market has been expecting, rather now there is a higher probability that they will raise them, and higher interest rates reduce the expected performance of stocks.

💡 What you should know: 172,000 jobs means a bye-bye to short-term rate cuts. An economy that continues hiring at this pace wards off any fear of recession, even with a restrictive monetary policy, at the cost of lower stock performance.

3️⃣ Our portfolio fell more than $26,000 in one day

As everyone knows, much more than half of our wealth is invested in the stock market, and most of the exposure is in the US market. So we personally feel the drops.

But, although it sounds contradictory, we are somewhat "relieved" to see this pullback. Simply because the stock market cannot just go up without stopping. It is not normal and it is not "healthy". When valuations reach very demanding levels, bad news is taken with too much force.

Additionally, due to the fact that we are still in our accumulation phase in our financial journey, we feel much more comfortable buying at lower prices. In fact, we are preparing for purchases this week.

We tell you more in the post we made for members, here.

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4️⃣ Apple's growth narrative is going to play out within 48 hours

With 2 days to go until the World Developers Conference (WWDC 2026), Apple shares are under the microscope of analysts. 

With some reports published (and one or two "leaked"), Apple is expected to present a complete overhaul of its iOS 20 and macOS operating systems, deeply and natively integrating autonomous Artificial Intelligence agents. Obviously.

Historically, arriving late to a trend is like a cardinal sin in Silicon Valley, and Apple has been pointed out and even punished for playing defense for a while. It seems that market expectations are so absurdly high that any announcement that doesn't equate to Siri solving world crises could be punished by investors.

💡 What you should know: Many expect Apple's growth narrative for the next decade to play out in this conference. The focus will be on whether or not they manage to clearly demonstrate how they are going to monetize generative AI directly on the hardware of their millions of active users.

5️⃣ Walmart reaches one million drone deliveries

While the market looks to the sky praying that Friday's drop won't be repeated, Walmart looks to the sky for the millionth time to deliver packages.

The company published an article celebrating that they had crossed one million drone deliveries, and that 40% of this volume was processed exclusively during the last quarter. The average time for an air shipment is 23 minutes, with an unusual record of 4 minutes and 44 seconds.

With electronic sales growing more than 20%, this drone infrastructure no longer feels like a science fiction publicity stunt and feels more like a competitive advantage over Amazon.

And after all this, you might be wondering, does Walmart do drone deliveries?. 

💡 What you should know: Walmart seems to be winning the high-speed delivery race. Aerial automation allows for drastically optimizing express distribution costs, consequently increasing the frequency of online purchases while protecting the operating margin. And yes, Walmart does drone deliveries.