At the close of June 4, the Tadawul All Shares Index(TASI.SA) decreased by 0.11%, closing at 10990.45 points; the Parallel Market Capped Index (NomuC)(NOMUC.SA) rose by 0.31%, closing at 23078 points.

U.S. equities tumbled Friday because of a violent sell-off for chip stocks. The tech-heavy Nasdaq Composite lost 4% for its biggest decline since the tariff turmoil of early 2025.

The catalyst for the chip turn this week was unclear. Some disappointment in Broadcom’s failure to raise its AI chip outlook Wednesday night caused the group to lose ground on Thursday. But Friday’s selling reached a new level of intensity. A spike in Treasury yields following a much stronger-than-expected jobs report for May didn’t help the case.

The NASDAQ(IXIC.US) lost 4.18% and closed at 25,709.43 for its biggest drop going back to April 2025. The S&P 500 index(SPX.US) dropped 2.64% and ended at 7,383.74, while the Dow Jones Industrial Average(DJI.US) lost 695.15 points, or 1.35%, settling at 50,866.78. The blue-chip index closed at a record Thursday.

The S&P 500 lost more than 2% on the week for its first negative week in 10. The Nasdaq Composite tumbled 4.7% following Friday’s losses. The 30-stock Dow was modestly lower on the week.

The iShares Semiconductor ETF dropped 10% for its worst day since March 2020. Shares in Broadcom Limited(AVGO.US) were nearly 8% lower after tumbling more than 12% on Thursday. Marvell Technology(MRVL.US) dropped more than 16% Friday. Intel Corporation(INTC.US) and Advanced Micro Devices, Inc.(AMD.US) fell around 11%.

Micron Technology, Inc.(MU.US), the memory chipmaker that’s been the latest star of the bull market, was down 13% after dropping 8% on Thursday.

“Investors had been kind of hovering with their finger over this sell button,” said Mark Hackett, chief market strategist at Nationwide. “Not necessarily to get out. But if you’ve owned some of these semiconductor names through the last two months, you’re very out of whack with your long term positioning goal. You need to take profits at some point.”

Sah Savings Product Offers 4.60% Return For June Issuance

Saudi Ministry of Finance and the National Debt Management Center opened individual subscriptions for the Shariah-compliant Sah savings product on June 7. The government-backed sukuk features a fixed 4.60% return for a one-year term. Allocation is scheduled for June 16, with final maturity payouts on June 28.

Strong Jobs Report Drives Wall Street Bets For Rate Hikes

Federal Reserve Chairman Kevin Warsh faces intensifying pressure as a strong U.S. labor report drove traders and BNP Paribas to forecast upcoming interest rate hikes starting December. President Donald Trump publicly criticized market fears, stating economic growth does not equal inflation. Cleveland Fed President Beth Hammack signaled potential summer hikes if inflationary pressures persist.

KSA Stocks

SAPTCO Secures Transport Contract Worth SAR 241M

Saudi Public Transport Co.(4040.SA) (SAPTCO) received a notification of award on June 4, 2026, for the Al Madinah Al Munawarah Public Transport Project. The contract, awarded by the Al Madinah Region Development Authority, is valued at SAR 241,475,055 inclusive of VAT. The agreement covers public bus transportation services for a period of three years.

Miahona Buys Water Firm for Up to SAR 102M

Miahona Co.(2084.SA) signed an agreement on June 4, 2026, to acquire a 100% stake in Sha’s Water Services Ltd. Company from Al Manhal Water Factory Company Limited. The transaction is valued at SAR 95,010,990 and could reach SAR 102,710,990 based on financial targets. The deal expands Miahona's Riyadh water distribution business pending regulatory approvals.

Go Telecom Schedules Earnings Call

Etihad GO Telecom Co.(7040.SA) (GO) announced its intention to hold an earnings conference call with investors and financial analysts on June 8, 2026, at 3:00 PM Saudi time. Executive management will discuss consolidated financial results for the fiscal year ended March 31, 2026. The company will publish its presentation on its investor relations website.

Saudi Darb's Ex-Board Contests Joint SAR 100M Claim

Saudi Darb Investment Co.(4130.SA) said former board members from its 2010–2013 term have filed an appeal in the company's SAR 100 million compensation case before the Capital Market Authority's securities disputes committee, which seeks joint and several damages from them. Further updates will be disclosed in due course.

USA Stocks

Nasdaq 100 Tumbles 5% as AI Optimism Fades

The NASDAQ-100(NDX.US) tumbled nearly 5% and the Philadelphia Semiconductor Index plunged over 10%, erasing $1 trillion in market value, driven by interest rate pressures and profit-taking in crowded artificial intelligence stocks. NVIDIA Corporation(NVDA.US) fell 6.2%, while Meta Platforms(META.US) dropped 5.5% following reports of a potential stock issuance. Strategists note the decline reflects a thematic repricing rather than an index collapse.

Trillion-Dollar Tech Giants Shed 1.1 Trillion Over Inflation Fears

Natixis CIB Americas noted the Federal Reserve's rate-hike threshold remains high despite strong jobs data, while Broadcom Limited(AVGO.US)'s AI revenue outlook triggered a market normalization. US 10-year Treasury yields climbed to 4.55%, erasing global gold gains and dragging Bitcoin once under $60,000. Strategists view the $1.1 trillion mega-cap rout as a healthy positioning correction exacerbated by upcoming capital calls for a massive SpaceX(SPCX.US) initial public offering.