Axios

Tech stocks plunged Friday amid rising bond yields and concerns about the massive growth expectations that have been fueling the AI trade.

Why it matters: It was a bloodbath for chip stocks — the physical infrastructure underpinning the promising AI economy.

Financial markets are pricing in the possibility that Kevin Warsh, the newly installed Federal Reserve chair, may have to push interest rates higher despite White House desires for cheaper money.

• Friday's stronger-than-expected jobs report reinforces the idea that the labor market is increasingly on solid footing, removing downside risks to its employment mandate. Now, it's all about inflation.

Doomers be damned: America is in the midst of a hiring reacceleration that few saw coming.

Why it matters: It is a rapid turnaround from the slump of 2025's gloomy jobs growth. Employers are coming off the sidelines, with reinvigorated demand for new staff, despite the risks of economic uncertainty from the Iran war, AI, tariffs and more.

Years before he helped launch Disney+, or helped the Mouse buy Marvel and Star Wars, Kevin Mayer studied mechanical engineering at MIT and spent time working on battlefield radar systems and signal processors.

• Now he's getting back to those roots.

Driving the news: Smash Capital, the venture firm Mayer co-founded in 2021, has led a $200 million Series B round for autonomous turret maker Allen Control Systems at a $2.2 billion post-money valuation.

The U.S. economy added 172,000 jobs in May, while the unemployment rate held at 4.3%, the government said Friday.

Why it matters: The labor market is strengthening after months of lackluster jobs growth, confirming the economy is gaining momentum despite the economic fallout from the Iran war.

After an astonishing run-up last year, the price of gold is moving sideways.

Why it matters: It undercuts the idea that the precious metal is a safe-haven investment during risky times.

South Korea's wild markets are shaking the country's currency.

Why it matters: The swings in the South Korean currency, the won, illustrate how financial markets can create issues for the real economy.

As these two Gen Z maids of honor will tell you, the modern bachelorette party has evolved from one night out to a multi-day production with matching pajamas, signature cocktails, costumes and daily themes.

Stunning stat: Bridesmaids in 2026 are dropping hundreds — in some cases, thousands — on other people's pre-wedding celebrations.

The S&P said Thursday that it's not changing its rules to fast-track mega-cap IPOs onto its marquee stock index, the S&P 500.

Why it matters: S&P's decision doesn't mention SpaceX, but it means that Elon Musk's company — as well as Anthropic and OpenAI, if they go public as expected — won't be making it into the index for at least a year.

• And it's a surprise, coming after other major indexes drew fire for changing their rules to more quickly accommodate Elon Musk's company.

The 1970s oil-shock playbook needs an update: The inflation costs remain, but the employment risks appear far smaller than they did 50 years ago.

Why it matters: As the Iran war continues, there are early signs of renewed strength in the labor market.

• If energy disruptions pose less of a risk to jobs, the challenge for central banks shifts from managing stagflation risks to guarding against renewed price pressures.

With a steady labor market and still-high inflation, two Federal Reserve officials are on the record this week noting that the next rate move might be up, not down.

What they're saying: In a speech Wednesday in El Paso, Dallas Fed president Lorie Logan said that consumer spending remains robust, corporate earnings are "going gangbusters" and the AI investment was continuing to boom.

Benchmark Capital has effectively closed two new funds: $750 million for its 12th flagship early-stage strategy, and $1.25b for its first growth fund.

Why it matters: Both funds are major departures from historical precedent for Benchmark, which has long been considered one of Silicon Valley's most successful VC firms.

Pershing Square Capital plans to sell its 4.4% stake in Universal Music Group, after the record label rejected a $63 billion takeover offer.

Why it matters: Bill Ackman is sailing away from his white whale, after nearly five years of fishing.

Anne Neuberger, the former U.S. deputy national security advisor for cyber and emerging technologies, has joined Andreessen Horowitz as a fulltime partner and the firm's first head of global affairs, Axios has learned exclusively.

Why it matters: This reflects the growing interconnectivity of tech and geopolitics, particularly as sectors like defense-tech become key to venture portfolios.

A deadly cattle pest called New World screwworm has been found in Texas, 60 years after it was effectively eradicated in the United States.

Why it matters: The U.S. beef herd is already the smallest it's been in 75 years, and retail prices for the staple protein are at record highs.

California is losing people from suburbs year after year, revealing a deeper demographic shift reshaping America's most populous state.

Why it matters: If California's commuter engines keep shrinking, the state risks losing the diverse workforce that powers its economy — while shifting political clout to the states where those families relocate.

Americans are letting it ride, with a record share of their wealth in the stock market.

Why it matters: It means that the AI-driven rally is enriching Americans more than usual and exposing them to potentially painful losses from a reversal.

The booming stock market is making a lot of folks richer, especially those who are already spectacularly rich, finds a report out from consulting firm Capgemini Thursday.

Why it matters: Welp. Even among those who invest in stocks and other kinds of financial assets, there's a wealth divide — and it's growing.

• That's worth noting at a time when more regular folks are putting their money in markets, while those who aren't invested are seeing the value of their incomes erode with higher inflation.