Dear Friends,

Tangents: Happy Friday

Carolann is away from the office for a few days this week, attending 2026 Bloomberg Tech Conference in San Francisco.

June 5, 1947: U.S. Secretary of State George C. Marshall outlines the European Recovery Program to rebuild post-WWII Europe. History.com

June 5, 1981: The U.S. Centers for Disease Control and Prevention report unusual pneumonia cases, marking the first official recognition of what becomes the AIDS epidemic. CDC – HIV/AIDS Timeline
June 5, 2004:The 40th President of the United States dies at age 93 after a long battle with Alzheimer’s disease. Wikipedia

🌱 World Environment Day-A global United Nations Day encouraging environmental protection and awareness worldwide. unesco

Adam Smith economist, philosopher; “father of modern economics”-b,1723
Ken Follett bestselling author of historical thrillers-b,1949
Mark Wahlbergactor, producer, former rapper “Marky Mark-b,1971

New Velociraptor cousin was a ‘4-winged’ dragon that hunted prey from the trees of ancient China, fossil find hints

A new microraptor from Cretaceous China likely preyed on ancient birds.

NASA astronauts briefly shelter in ‘safe haven’ procedure following worsening leaks on International Space Station

A brief leak scare on the International Space Station complicates NASA and Congress’ plans to extend the station’s lifespan to at least 2032.

Flu drugs might fight cognitive decline seen in HIV, early study hints

A very early study suggests flu antivirals might help reverse certain signs of accelerated aging in people with HIV. But more research is needed to confirm these effects.

Scientists race to collect the last seeds from a critically endangered tree before it goes extinct

Seeds from the last surviving wild Dendroseris neriifolia tree are now stored in Kew Gardens’ Millennium Seed Bank as researchers work to find ways to reintroduce the species into the wild.

Venus and Jupiter are about to almost touch in the sky in one of 2026’s best skywatching events

A close conjunction of the two brightest planets in the night sky will take place over several evenings, with the best time to look being June 9-11.

Lego launches 12,060-piece Sagrada Família — its biggest ever set

Barcelona’s Sagrada Família is nearing completion after 144 years. Now, Lego is inviting fans to recreate the iconic church brick by brick — albeit on a much smaller scale.

PHOTOS OF THE DAY

Edinburgh, Scotland

Performer Fintan McCarney poses with cut-out of the Edinburgh Fringe festival programme in Camera Obscura’s giant kaleidoscope
Photograph: Jane Barlow/PA

Vlora, Albania

Flamingoes in the Vjosa-Narta protected area
Photograph: Florion Goga/Reuters

La Guaira, Venezuela

The Dancing Devils of Naiguatá take part in a procession
Photograph: Diko Betancourt/Anadolu/Getty Images

Market Closes for June 5th, 2026

International Markets

Bonds

Commodities

Market Commentary:

📰 On this date in 1723, Adam Smith, the intellectual father of capitalism, was baptized in Kirkaldy, County Fife, Scotland.

  🍨Canada 🏖

By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell 2.3% at 34,413.64 in Toronto.
The move was the biggest since falling 2.4% on Feb. 12 and follows the previous session’s increase of 1.2%.
Today, materials stocks led the market lower, as 4 of 11 sectors lost; 144 of 222 shares fell, while 74 rose.
Shopify Inc. contributed the most to the index decline, decreasing 5.4%.
TerraVest Industries Inc. had the largest drop, falling 31.6%.
Insights
* In the past year, the index had a similar or greater loss two times. The next day, it advanced after both occasions
* This quarter, the index rose 5%
* So far this week, the index fell 1%, heading for the biggest decline since the week ended April 24
* The index advanced 31% in the past 52 weeks. The MSCI AC Americas Index gained 24% in the same period
* The S&P/TSX Composite is 2.5% below its 52-week high on June 4, 2026 and 30.8% above its low on June 5, 2025
* S&P/TSX Composite is trading at a price-to-earnings ratio of 21.4 on a trailing basis and 16.4 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.2% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$5.55t
* 30-day price volatility rose to 15.04% compared with 13.15% in the previous session and the average of 12.91% over the past month
Index Points
Materials | -521.0912| -8.3| 4/56
Energy | -195.7560| -3.1| 3/34
Information Technology| -132.3928| -5.1| 2/7
Industrials | -14.6623| -0.4| 8/21
Communication Services| 3.3911| 0.5| 2/2
Health Care | 3.5411| 3.9| 4/0
Real Estate | 4.5075| 1.0| 16/3
Financials | 4.6426| 0.0| 15/8
Utilities | 5.4792| 0.4| 7/7
Consumer Discretionary| 6.3627| 0.6| 4/5
Consumer Staples | 29.4665| 2.7| 9/1
Shopify | -75.1300| -5.4| -34.7| -30.9
Agnico Eagle Mines Ltd | -62.1800| -7.2| 43.3| -2.0
Celestica | -58.2900| -12.3| 18.3| 27.7
Couche-Tard | 9.4480| 2.2| -33.7| 10.2
Constellation Software | 9.4530| 2.3| 24.6| -10.1
Dollarama | 10.2300| 3.0| 47.7| -11.7
Transcontinental | 7.4| 0.1820| 119.0| 55.2
Curaleaf | 6.6| 1.1400| 61.5| 58.5
Metro Inc. | 4.4| 5.2590| 28.3| -6.2
TerraVest Capital | -31.6| -5.3190| 1,444.5| -34.1
ERO Copper | -16.1| -5.0200| 47.1| -7.8
Americas Gold & Silver Corp | -15.5| -1.7870| 7.4| -2.8
(MT Newswires)
The Toronto Stock Exchange slumped sharply Friday, falling off a day-prior record high as weakness in base metals, technology and energy stocks outweighed gains in other sectors, while investors assessed stronger-than-expected employment data from both Canada and the United States that pushed bond yields higher and impacted expectations for interest-rate cuts.
The S&P/TSX Composite Index closed down 803.61 points, or 2.28%, to 34,413.45, with sectors mixed over Friday’s session.
Base Metals led decliners , down 9.54%, while Energy, Industrials and Information and Technology were down 4.09%, 0.41% and 4.35%, respectively.
Health Care led gainers, up 3.77%, with Financial, up 0.04%, Telecom, up 0.28%, Utilities, up 0.44%, and the Battery Metals Index, up 0.11%.
Statistics Canada reported that employment rose by 88,000 jobs in May, well above expectations for a gain of about 10,100, while the unemployment rate fell to 6.6% from 6.9% in April.
The increase marked the first significant monthly job gain since November 2025.
Employment increased among core-aged ,25 to 54 years old, women (+31,000; +0.5% month over month), core-aged men (+25,000; +0.3%), and youth aged 15 to 24 (+22,000; +0.8%).
Employment increased in several industries, most notably in construction (+27,000; +1.7% month over month), information, culture and recreation (+19,000; +2.3%), transportation and warehousing (+19,000; +1.7%) and accommodation and food services (+17,000; +1.5%).
In contrast to expectations for a "modest" 10,000 increase, Canadian employment rose 88,000 during the month, said Desjardins after the Friday release of Labour Force Survey (LFS).
Strength was broad-based across industries and was all in full-time work, noted the bank.
Yields across the Government of Canada bond curve is rising, led by the short end, where traders are now pricing in between one and two rate hikes for the remainder of this year, added the bank.
That said, given the volatility in the LFS, it’s difficult to have much confidence in the signaling power of Friday’s reading, according to Desjardins.
The bank continues to see downside risks for the Canadian economy, both from fundamental weakness and trade negotiations.
Still, other economists remained cautious on the outlook for monetary policy and the Canadian dollar despite the stronger labour market data.
UBS noted that April inflation readings came in below market expectations, while the USMCA trade deal negotiations deadline of July 1 is approaching fast.
This follows a period of generally weaker economic data from Canada, as evidenced by a sharp decline in economic surprise indexes, writes the bank in a note to clients.
Against that backdrop, the bank expects the Bank of Canada to leave its policy rate unchanged at 2.25% at next week’s meeting.
As a result, UBS expects the Canadian dollar to face near-term headwinds and said it would not be surprised to see USD/CAD trade in a 1.40-1.42 range before eventually stabilizing and moving back toward 1.35.
In commodities, gold prices fell sharply after stronger-than-expected U.S. employment data boosted the dollar and treasury yields.
Gold for July delivery was last down US$137.20 at US$4,367.80 per ounce, its lowest level since Jan. 2.
The U.S. economy added 172,000 jobs in May, exceeding expectations for an increase of 80,000, while the unemployment rate held steady at 4.3%.
The data lifted the U.S. dollar and pushed bond yields higher.
Oil prices declined but remained elevated amid ongoing uncertainty over the conflict in the Middle East.
West Texas Intermediate crude for July delivery settled down US$2.50 at US$90.54 per barrel, while August Brent crude fell US$1.99 to US$93.04.
Crude prices were stressed after Israel and Lebanon reached a U.S.-brokered ceasefire agreement, although concerns over regional stability persisted as reports indicated continued military activity in Lebanon and tensions between the United States and Iran remained unresolved.
Supply disruptions through the Strait of Hormuz and declining U.S. crude inventories continued to provide underlying support for prices.
Also, one of the federal Liberals’ flagship affordability measures will land in the bank accounts of eligible Canadians starting Friday, reported The Canadian Press.
The program was previously called the GST/HST credit and is usually paid out on a quarterly basis to lower-income households to help them keep pace with the rising cost of living.
An estimated 12-million Canadians are eligible for the one-time benefit and amounts vary based on the size of the household, with a single adult with no children getting up to $267 and a couple with two kids receiving a maximum of $533, CP reported.
US
By Rita Nazareth
(Bloomberg) — Wall Street’s historic weekly run came to a halt, with stocks hit by a tech selloff and higher bond yields after a solid jobs report added to bets the Federal Reserve’s next interest-rate move will be a hike.
That repricing of the Fed outlook coincided with a swoon in the artificial-intelligence shares that had led a surge from this year’s lows.
Growing anxiety about valuations sent the S&P 500 down 2.6%, with the index failing to complete a 10th straight week of gains.
The Nasdaq 100 sank about 5%, the most since April 2025.
A gauge of chipmakers tumbled 10%.
The concerted slide in stocks, bonds and crypto was the biggest setback in months for the latest leg of the bull market, which traces to the end of March when negotiations began in earnest to end the war in Iran.
Concern has grown recently about the sustainability of an AI-fueled rally that had pushed the Philadelphia Semiconductor Index toward its best quarter ever.
The tech selloff also followed an impressive earnings season for AI companies, with investors questioning whether growth rates have peaked, according to Mark Hackett at Nationwide.
“We find ourselves facing another strong pullback in tech,” said veteran strategist Louis Navellier.
“It appears to be a case of profit-taking in the semiconductors.
Also hitting the market today are higher interest rates.
It’s due to very strong job data, lowering expectations for a Fed rate cut.”
While there was a lot to like in Friday’s economic data, the figures came at a time when inflation risks are challenging the Fed.
Treasury two-year yields jumped 12 basis points to 4.16%.
Swaps are fully pricing in a rate increase by the end of 2026.
The dollar rose.
Bitcoin slumped.
US job growth topped all forecasts in May, and the unemployment rate held steady at 4.3%, offering the clearest sign yet that the labor market may be breaking out of a prolonged period of lackluster hiring.
“Today’s upside surprise underscores ongoing economic resilience, but it will also likely keep the Fed — and the markets — focused on inflation pressures,” said Ellen Zentner at Morgan Stanley Wealth Management.
The market may be treating today’s good economic news as bad news for equity prices, but this is a knee-jerk reaction as bond markets reprice the Fed path, according to Neil Dutta at Renaissance Macro Research.
“Ultimately, if the Fed is hiking because of expanding employment, I would not necessarily assume it is bad for the stock-market outlook,” Dutta said.
“Stagflation is bad for stocks; an inflationary boom is not.”
Fed policymakers next meet June 16-17 under the leadership of new Chairman Kevin Warsh.
“If Chair Warsh pushes for cuts at his first meeting, he will be pushing against the evidence,” said Seema Shah at Principal Asset Management.
“Our base case remains that the Fed stays on hold through 2026, but if employment data continues to track around May’s pace, rate hikes this year would come firmly into play.”

Corporate Highlights:
* President Donald Trump expressed interest in the US government holding equity stakes in leading artificial-intelligence developers, saying that he planned to discuss the idea of a partnership with AI companies’ executives as soon as next week.
* Meta Platforms Inc. is considering a stock offering after Alphabet Inc.’s successful $85 billion equity sale, according to the Financial Times.
* A quiet effort by Morgan Stanley to prevent retail investors from placing multiple orders for shares of SpaceX in the rocket company’s massive initial public offering is facing pushback from some of the country’s largest brokerages.
* Alphabet’s Google has agreed to pay Elon Musk’s SpaceX $920 million a month for computing power as part of a cloud services deal that runs through mid-2029, its second such agreement with an AI competitor in a matter of weeks.
* The top lawyers for several states are drafting a legal challenge to Paramount Skydance Corp.’s $110 billion deal to buy Warner Bros. Discovery Inc., laying the groundwork for an antitrust suit over the Hollywood mega-deal.

Some of the main moves in markets:
Stocks
* The S&P 500 fell 2.6% as of 4 p.m. New York time
* The Nasdaq 100 fell 4.8%
* The Dow Jones Industrial Average fell 1.3%
* The MSCI World Index fell 2.3%
Currencies
* The Bloomberg Dollar Spot Index rose 0.6%
* The euro fell 0.8% to $1.1518
* The British pound fell 0.7% to $1.3331
* The Japanese yen fell 0.1% to 160.23 per dollar
Cryptocurrencies
* Bitcoin fell 4.4% to $60,757.81
* Ether fell 11% to $1,579.86
Bonds
* The yield on 10-year Treasuries advanced seven basis points to 4.54%
* Germany’s 10-year yield advanced two basis points to 3.04%
* Britain’s 10-year yield was little changed at 4.90%
Commodities
* West Texas Intermediate crude fell 2.9% to $90.38 a barrel
* Spot gold fell 3.6% to $4,313.58 an ounce

Have a wonderful day.

Be magnificent!

As ever,

Shima

"To confine our attention to terrestrial matters would be to limit the human spirit."– Stephen William Hawking –b, 1942-2018

Shima Zangeneh

Assistant to Carolann Steinhoff

Queensbury Securities Inc.

340A – 730 View Street

Victoria BC V8W 3Y7

Tel: 778-430-5851

Fax: 778-430-5828