The Exchange 6/5/26

**SPEAKER_1** (0:00)
At Venture Global, we think about what can be done, not what's usually done. Through innovation, Venture Global is not only building some of the largest energy facilities in the world, right here in the United States, but delivering American energy at a fraction of the cost and a fraction of the time. So while others are busy talking, we're busy building. That's Venture Global.
That's unstoppable energy.

**SPEAKER_2** (0:30)
Hey Fidelity, what's it cost to invest with the Fidelity app?

**SPEAKER_3** (0:35)
Start with as little as $1 with no account fees or trade commissions on US stocks and ETFs.

**SPEAKER_2** (0:42)
That's music to my ears.

**SPEAKER_3** (0:44)
I can only talk.

**SPEAKER_4** (0:46)
Investing involves risk, including risk of loss.

**SPEAKER_5** (0:47)
Zero account fees apply to retail brokerage accounts only.

**SPEAKER_4** (0:49)
Zero dollar commission does not apply to customers designated by Fidelity as a professional equity trader.

**SPEAKER_6** (0:52)
A limited number of ETFs are subject to a service fee of $100. See details at fidelity.com/commissions. Fidelity Brokerage Services LLC member NYSCSIPC.

**Kelly Evans** (1:00)
You're listening to The Exchange. Here's today's show.
Thank you very much, Scott, and welcome to The Exchange. I'm Kelly Evans. As you can tell from the graphic we were just playing there, the market still off is picking up steam, especially in the Nasdaq and the small caps today. Just take a look at the Nasdaq there, they're down nearly 3% as the AI trade has been hitting the skids again. The small caps, remember, they have a lot of AI infrastructure exposure too. They also have rate exposure and it doesn't help that yields are moving higher today. After the way stronger than expected jobs report, the 10-year now at 452, we'll have more on that later. The safety trades are holding up the Dow and S&P, that's sectors like healthcare, which has been super strong this month, staples, even utilities adding a smidge, while Bitcoin is now below 60,000 to its lowest level since 2004 It's just a hair back above that, now 61 and change. Semi's memory, most of the Mag7 is down, the Semi ETF. Look at that, SMH is down nearly 7 percent, 584 It's down 43 points today. Sandisk and Micron, Sandisk down 10 percent similar for Micron as well. So why this sudden reversal in the trade that has absolutely dominated the year? Well, investors are pointing to a few notable events this week. Google doing one of the largest capital raises of all time. The concern, why can't a behemoth like them fund their own AI build out? Then Broadcom reporting a less than stellar outlook in its earnings report this week, and investors start to question and they start selling. We saw a deep decline yesterday that's continuing with a five or six percent drop today. Concerns are now building about the market's ability to absorb these massive IPOs as well, and where the funding may come from, from investors. Finally, the jobs report today may solidify the narrative that will see no rate cuts this year, maybe even a hike. Here for our opening exchange is Drew Mattis, the Chief Market Strategist at MetLife and Investment Management, and Adam Crisafulli of Vital Knowledge. It's great to have you both here. Drew, prior to today, you were saying there's only a few areas of the stock market you still liked.

**Drew Mattis** (3:05)
Yeah. I think what you're seeing today is, first of all, there's a lot of narratives that are intertwined right now, and I think it's interesting. You get a good jobs report, which if people talk about AI, they typically talk about labor savings, and then we're seeing jobs being added, which has been our thesis all along.
I think, though, maybe it just causes enough people to rethink what they're thinking is going to happen over the next 12 to 18 months. And certainly with the Fed, it's not enough to, I think, prompt a hike, but it's certainly enough to get people thinking that maybe it cuts out on the table anytime soon.

**Kelly Evans** (3:42)
You were saying the only, I'm not really comfortable with most equities right now. If I had to pick something, health care, the need's not going away. Real estate is starting to look more interesting. I mean, do you, does this really mean to you that investors should look to those areas and not towards the areas that have generated multiple 100% returns up to this point?

**Drew Mattis** (4:01)
Well, everything has a time and place. So it's a question of, you know, are you comfortable taking risks right now? And I think what the market's showing us right now is that a lot of people, you know, are maybe trying to take some chips off the table and make sure that they've got cash on hand. And I think that's what you're seeing play out today.