Welcome to Markets Desk, here's where things stand heading into the weekend.
The dollar surged to a one-and-three-quarter-month high Friday after a stronger-than-expected May payroll report reignited speculation that the Fed's next move is actually a rate hike, not a cut. The dollar index finished up nearly two-thirds of a percent, putting rate-sensitive assets on notice and reshaping the near-term policy narrative considerably.
Shifting to the AI infrastructure buildout, SpaceX has locked in a nine-hundred-twenty-million-dollar monthly compute deal with Google, following a previously reported one-point-two-five-billion-dollar monthly agreement with Anthropic. These are staggering recurring revenue figures ahead of what could be a record-setting SpaceX IPO, and they underscore just how aggressively hyperscalers are racing to secure compute capacity outside traditional cloud channels.
That spending pressure is also rippling through equity markets. Big Tech sold off sharply Friday, with chip makers leading losses inside the S&P five hundred. Meanwhile, reports suggest Google and potentially Meta may issue stock to help finance what analysts are projecting as an eight-hundred-twenty-billion-dollar AI capital expenditure wave — a move bond markets welcome but equity investors are greeting with considerably less enthusiasm.
That's the tape. Markets Desk, signing off the floor.
