Nasdaq takes a dive
Bloomberg
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The Nasdaq 100 plummeted about 5%, its deepest dive since April of last year, while a gauge of chipmakers fell twice as much Friday as Wall Street ended the weak on a decidedly sour note.  What might be eating at investors (despite the frenzy over SpaceX’s IPO) is a return of that unscratchable itch known as fear of over-valuation. Worries that a tech stock bubble may soon deflate combined with surprisingly big jobs numbers, and thus suspicions the Fed — even with a new chair courtesy of Donald Trump — could raise rates, triggered serious profit-taking. But there are a few lonely voices out there still holding out for rate cuts. What You Need to Know TodayHow does $920 million-per-month strike you? That’s pretty steep rent for most, but when you’re Google, you can afford it. That’s how much it agreed to pay SpaceX for computing power as part of a cloud-services deal that runs through mid-2029. The monster accord comes as SpaceX’s initial public offering continued to make news Friday. The latest came via Morgan Stanley, where a quiet effort to prevent retail investors from placing multiple orders for the rocket company’s shares faced pushback from some of the country’s largest brokerages. Republicans in the US Senate pushed through a bill funding the Immigration, and Customs Enforcement and Border Patrol agencies for three years without requiring their agents — the subject of wide-ranging allegations of assaults, civil rights violations and the killings of unarmed US citizens — adhere to normal law enforcement restrictions. Democrats had sought to ban agents from wearing face masks, require they wear body cameras and identification and obtain judicial warrants before entering Americans’ homes. In passing the bill, however, the Senate GOP also refused to block Trump’s proposed use of $1.8 billion to fund compensation claims by individuals — including those who attacked the US Capitol on Jan. 6, 2021 — who claim the Justice Department was “weaponized” against them. The fund has been widely derided as an unprecedented “slush fund.”  Posters displaying images of Renee Good, left, who was shot in the head by ICE agent Jonathan Ross, and Alex Pretti, who was shot multiple times in the back by Border Patrol agents, in Minneapolis. Photographer: Ben Brewer/Bloomberg US consumer borrowing posted another big increase in April, in the biggest back-to-back gain since the end of 2022, the government said. Many Americans are facing additional financial pressures as higher gas prices take a bigger bite out of their incomes. Slowing wage growth could be prompting some consumers to take on debt or rely on savings. Also on Friday, the Trump administration reported an unexpected jump in employment, surpassing all estimates. According to the Bureau of Labor Statistics, there was more hiring in leisure and hospitality, healthcare and social assistance. Treasuries sold off after the release, sending two-year yields up about 11 basis points to 4.15%. Interest-rate swaps showed that traders are now fully pricing in a quarter-point rate increase by year-end. Spring Sale: Save 60% on your first year Get the numbers behind the narratives. Enjoy unlimited access to Bloomberg.com and the Bloomberg app, plus market tools, expert analysis, live updates and more. Offer ends soon. Unlock 60% off
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