S&P 500’s Worst Day of the Year & GLP-1s Are Costing Retailers in Returns

**SPEAKER_1** (0:01)
Marketers, tell us if this sounds familiar. You invest in something that seems incredible, like millions of views, but then don't see any revenue. Instead, invest in what looks good to your CFO. LinkedIn ads generates the highest row ads of all major ad networks. Spend $250 on your first campaign on LinkedIn ads and get a $250 credit. Just go to linkedin.com/mbd.
That's linkedin.com/mbd. Terms and conditions apply.

**Neal Freyman** (0:28)
Good Morning Brew Daily Show. I'm Neal Freyman.

**Toby Howell** (0:31)
And I'm Toby Howell.

**Neal Freyman** (0:32)
Today, the stock market's blistering rally came to a screeching halt.

**Toby Howell** (0:36)
Then GLP One drugs are leading to return flation, much to retailers chagrin. It's Monday, June 8th. Let's ride.

**Neal Freyman** (0:49)
Good morning. It's great to be back and huge thanks to our team for holding out the fort while we were out late last week.
Folks, I'm hurtin.
Don't go to a Toby Howell bachelor party if you haven't been through Marine Corps basic training. Got gashes on my hands and knees, a severe sunburn on my neck, and a demoralized ego. Overall, the nine of us competed across 18 events, including basketball, beer mile, punt pass kick, paddle boarding, home run derby, pushups. And I came in last place. Thought I was mildly athletic, but then again, I've never competed against a bunch of D1 soccer players. Toby, don't know about you, I'm excited to just sit for a while.

**Toby Howell** (1:26)
But did you have fun, Neal?

**Neal Freyman** (1:27)
I did have a lot of fun.

**Toby Howell** (1:29)
Okay, good. Yeah, we definitely went extremely hard. My brother VibeCoded a website to keep track of all the points totals. And I think some audits are in order because I did finish first, my brother finished second, my brother-in-law finished third. So very suspicious there. I think my favorite was taking portions of the LSAT, G-R-E, S-A-T and MCAT. Shout out to doctors because the MCAT, that was the hardest test I've ever seen in my entire life. And again, that doesn't sound like fun to most people to do those tests during your bachelor party, but again, we needed something academic to balance out all the physical stuff. But an extremely fun weekend, we're wearing hats themed for men. I want to do a bachelor party every single weekend. And now a word from our sponsor, Sage. Neal, how trusting are you when it comes to new tech?

**Neal Freyman** (2:18)
I barely trust people. So new tech, I can sometimes be a bit iffy on.

**Toby Howell** (2:22)
And that, ladies and gentlemen, is why I still don't have Neal's phone number. The point is, if you're like Neal when it comes to AI, Sage has a little something for you. They introduced the AI Trust Label to show you how AI is used across their finance, payroll and HR software products for businesses of all sizes.

**Neal Freyman** (2:39)
This label tells you where AI is being used, what data it's accessing, how it's governed and how it's monitored. For finance teams dealing with sensitive payroll and financial data, that transparency matters.

**Toby Howell** (2:49)
To learn more, head to sage.com/morningbrew. That's sage.com/morningbrew.

**Neal Freyman** (2:56)
Like me waking up the final morning of Toby's bachelor party, the stock market partied too hard and is paying for it. Stocks suffered their worst day of the year on Friday to halt a historic winning streak due to a surprisingly strong jobs report and more worries over an AI bubble that might pop. First, the numbers, the S&P 500, which was trying to complete a 10-week winning streak, tumbled 2.6% to cap off its worst weekly performance in over a year. The Nasdaq, which focuses on tech companies, dropped 4.2%, its worst day since Liberation Day tariff announcements last April.
Tech really was the main culprit for the sell-off. The nine tech companies worth at least $1 trillion averaged a loss of 5.3% on Friday, evaporating $1.1 trillion in market value. So what matadors tamed this bull market? One is increasing jitters that companies' AI investments won't translate to meaningful revenue, a warning sign sparked by the chipmaker Broadcom's tamed earnings earlier in the week. But a bigger catalyst was the jobs report that dropped Friday morning, a great report that showed the US economy adding 172,000 jobs in May, more than double projections. But it was one of those unusual cases of good news means bad news because a hot job market means the Fed is unlikely to cut interest rates anytime soon, and in fact may hike rates by the end of the year. Toby, glad we weren't checking our portfolio on Friday.

**Toby Howell** (4:14)