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Public.com presents the rundown, your daily market update in 10 minutes. My name is Zadad Mani and Today is Monday, June 8th. In today's episode, we'll break down Friday's massive market sell off and what to look forward to this week. We'll also preview Apple's WWDC event today and a surprise deal between SpaceX and Google. Then stick around to the end of the show to find out why South Korea has been the hottest stock market in the world. We gotta got a great show for you today. Let's go. Well guys, the stock market winning streak came to an end last week and it ended with a thud. Stocks got wrecked on Friday. The S P 500 fell 2.6% and the Nasdaq got absolutely smoked, falling 4.2%, which was its worst day in more than a year. Most of the carnage was in chip stocks. The semiconductor index fell over 10% on Friday, which was its worst day since the COVID crash back in March of 2020. Names like Micron, Marvell, intel and AMD all fell more than 10%. And in total, more than a trillion dollars in market value was wiped out from chip stocks alone in a single day. So it was a brutal sell off and that spilled over into other areas like Bitcoin, which briefly dipped under $60,000. And what's funny is that the catalyst for the sell off was that we got on Friday morning. We talked about this on Friday's episode, but the made jobs report showed that the US economy added 172,000 jobs, which was more than double what economists were expecting. Now that's good news for the economy, but it was bad news for the markets because a strong labor market means the Fed has basically no reason to cut interest rates anytime soon. In fact, traders are now pricing in a 43% chance the Fed will raise interest rates before the end of the year and the odds of two or more rate hikes jump to 27%. So it's kind of crazy that we started the year off hoping for multiple rate cuts and we might actually end up with multiple rate hikes. And all of this puts new Fed chair Kevin Warsh in a pretty tough spot. When President Trump nominated him to be the Fed chair, I think he was hoping that Kevin Warsh would cut rates pretty quickly, but that might not be the case. Kevin Warsh's first meeting as Fed Chair is next week. So can't wait to see what he has to say. Now beyond just the labor market and a potential rate hike, the other reason behind the Friday Sell off could be that investors are just getting nervous about the AI trade. AI has been the main driver driver of the market rally this year and the market had gotten very top heavy. Here's an interesting stat that I read from the Wall street journal. The S P 500 was up more than 11% through May, but if you exclude AI related stocks, the gain was only 2.4%. So when a certain sector goes up that fast, you start hearing the bubble word being thrown around again. And when that happens, investors can be quick to hit the sell button which is what we saw on Friday. But look this morning chip stocks are bouncing back. I'm seeing a lot of green and pre market trading so it's possible that the Friday a one day blip and it could have been a good dip buying opportunity. We'll see how it plays out the rest of the week. And looking ahead, I mean we have a stacked week coming up. Both the CPI and PPI report dropped this week which will give us the latest information on inflation. We're also getting earnings from Oracle, which is a big AI name. And then on Friday SpaceX will start trading in what will be the biggest IPO in history. So yeah, we got a huge week ahead of us. So make sure you guys are locked into the podcast, even consider sharing it with someone because we're going to be covering a lot of information over the next few days. Let's run through some headlines starting with Apple. Apple kicks off its annual worldwide developer conference today and investors will be looking for answers regarding Apple's AI strategy. You know Apple has been getting clowned for the last couple of years for how bad Apple Intelligence has been since they showed it off at WWDC in 2024, Apple promised the smarter Siri and a bunch of other AI features and two years later many of these feature still haven't come out. I mean Siri is still borderline unusable. So we'll see if Apple can quiet the haters. Today the rumor is that Apple will show off iOS27 and Mac OS27 built around a new and improved Siri. The idea is to turn Siri from a basic voice assistant into an AI companion that can handle multi step tasks with a single command. I mean right now I wouldn't trust Siri to set an alarm for me. So multi step AI task is a pretty big jump. Now Apple is partnering with Google Google to make this happen. This new Siri will be powered by Google's Gemini AI models. Apparently Apple is paying Google only $1 billion a year to license the AI tech, which is a bargain in AI land. Siri being powered by Gemini does give me some hope that it won't be totally useless. But you know, despite Apple's struggles in AI, their stock has been doing pretty decent. Apple Stock is up 15% this year, which is tied with Google to being the best performing MAG7 stock this year. And if you zoom out, shares have gone up 50% over the past 12 months. The advantage that Apple has when it comes to AI is they have a massive base of users, over a billion devices, and those devices are powered by some of the best chips on the planet. So Apple devices like the iPhone and MacBooks and Mac minis could be the best devices to use AI, regardless of what model, and that could help Apple sell more devices in the future. So we'll see if we get some answers about that today. The WWDC keynote starts at 1pm Eastern. And by the way, this will be Tim Cook's last WWDC as CEO, as John Turk Furnace takes over as CEO on September 1st. So it's an end of an era. And hopefully Tim Cook has cooked up some fun surprises for his last keynote. Let's shift gears and talk about SpaceX and Google. According to SpaceX's regulatory filings on Friday, Google has agreed to a massive data center capacity deal with SpaceX that will pay SpaceX $920 million a month for AI computing power. This deal starts in October of this year and runs through June 2029, which works out to roug $30 billion total. This is actually the second major AI compute capacity deal that SpaceX has signed. Remember last month Anthropic signed a similar agreement to rent data center capacity from SpaceX in which Anthropic is paying $1.25 billion a month. So SpaceX is now fully pivoting into being an AI Neo Cloud company. And it makes sense, right? Remember earlier this year elon Musk merged SpaceX with his AI company XAI, and over the last couple of years XAI had built up two massive AI data centers in Memphis, Tennessee. Expect their chatbot Grok would get a ton of usage. Well, nobody really uses Grok anymore, so Elon has all this extra capacity going unused and now he's leasing it to companies like Anthropic and Google that desperately need that capacity. Now, I was kind of surprised that Google didn't have enough capacity, but according to the company, the demand for Gemini Enterprise has surged and their Google Cloud backlog nearly doubled last quarter to $460 billion so this deal with SpaceX is basically bridge capacity to meet that demand while they build out their own data centers. And I guess that also explains why Google announced that $80 billion stock sale last week to kind of fund the data center build out. Overall, this is a win win for all parties here. I mean, SpaceX signs a massive deal that locks in $30 billion in revenue and Google gets the capacity that it needs. What I wonder, though, is if Elon is going to fully pivot Xai into being an AI cloud company and just cut his losses on Grok. Either way, though, I say it's a good position for SpaceX to be in, especially right before their massive IPO this week. Let's talk about some stocks making moves today. Corning shares are up this morning after the company announced a massive deal with Amazon to supply them with fiber optic cables for Amazon's AI data centers across the U.S. see, most people know Corning as the company that makes the glass for the iPhone. But today, their fastest growing business is fiber optic cables. Now, these are the cables that connect server racks and AI chips together inside AI data centers. And everybody needs these cables. Now, back in January, Meta signed a $6 billion deal with Corning to supply them with fiber optic cables. And then in May, Nvidia invested $3.2 billion in Corning to have them build three new factories so they can build even more fiber optic cables. And then now you have this deal with Amazon. As a result, Corning stock is up more than 5% today. And if you zoom out, this stock has doubled this year and has gone up since 6x since the start of 2024. Now, on the flip side, WIX is getting crushed this morning after warning that revenue and bookings will come in weaker than expected. WIX is a website building company. I used to build WIX websites back in the day, but the company announced plans to cut 20% of its workforce, which is roughly 1,000 employees, as part of a major restructuring. As a result, shares of the company are down around 6% this morning at the time of this recording. Let's wrap the show with the fun fact. The best performing stock market in the world this year has been South Korea. The Cosby Index, which is South Korea's version of The S&P 500, doubled this year as of last week, thanks to the hype around AI. South Korea is home to companies like Samsung and SK Hynix, which make memory chips. And as we know, that's seen a huge surge in demand from AI data centers this year. In fact, both Samsung and SK Hynix hit a $1 trillion market cap at one point this year. And this hype around the South Korean stock market has South Korean retail investors going nuts. There are 14 million day traders in South Korea and they've been pouring a record amount of money into the stock market using borrowed money. Margin debt in South Korea hit an all time high recently. Well, many of these traders are probably getting a reality check this morning because of the chip sell off here in the US on Friday, the Cosby index fell nearly 9% in the first three minutes of trading. Today, the index is now down about 15 from his peak just from a few days ago. So unfortunately, some of these traders could be in for a rude awakening. But look, Nvidia's CEO Jensen Huang, he's not worried. He's actually in South Korea today. He threw out the first pitch at a baseball game and he told reporters that the market sell off is a buying opportunity. So yeah, you got the CEO of the biggest company in the world telling everyone to buy the dip. Well, all right guys, that's the rundown for today. Hope you guys enjoyed today's episode. If you did and you have like five extra seconds, consider giving us a five star rating on Apple, Spotify, YouTube, wherever you listen to your podcast. All that engagement really does help us out and it helps other people find the show. Thank you guys so much for listening, watching and commenting. Shout out to Mike for all the work behind the scenes and we'll see you guys back here tomorrow.