IndiView: Weekly Market Update 6/8/26

Below is a summarized transcript of the IndiView: Weekly Market Update for 6/8/26. The full video is included at the bottom of this post.

Semiconductor Stocks Pull Back, But Context Matters

Semiconductor stocks had a difficult week, with the SMH semiconductor ETF falling into correction territory after declining more than 10% from its recent high. That type of move can feel sharp, especially after such a strong rally, but it is important to keep the pullback in perspective. Even after the decline, SMH remained meaningfully above both its 50-day and 200-day moving averages, showing how far the sector had already run.

The Long-Term Semiconductor Story Still Looks Strong

The fundamental story for semiconductors remains positive, especially given the continued demand tied to artificial intelligence, data centers, and technology infrastructure. Earnings across the group have generally remained strong, although some valuation concerns remain after the sector’s rapid move higher. The key point is that a further pullback would not necessarily break the long-term story, but investors should understand how much semiconductor exposure they hold and whether it still fits their overall portfolio.

May Jobs Data Shows Improvement

The May jobs report was encouraging overall, with job growth improving and April’s numbers revised higher. After a period of weaker labor market data, the last two reports suggest the economy may be moving back toward a more normal pace of job creation. Unemployment remains low, which indicates that layoffs are still limited and the labor market continues to show resilience.

Wage Growth Is the Main Watch Point

One area worth watching is wage growth. Wages increased year over year, but at a pace that remains below inflation. That means many workers may still feel like their income is not keeping up with rising prices. Slower wage growth may help reduce inflation pressure, but from a household perspective, it is not ideal if pay increases continue to lag the cost of living.

CapEx Is Taking Priority Over Share Buybacks

Corporate share buybacks are at five-year lows, and one major reason appears to be the rise in capital expenditures. Companies are spending aggressively on future growth, with capital investment rising sharply last year and expected to increase substantially again this year. Much of that spending is being driven by large technology companies investing heavily in artificial intelligence infrastructure.

AI Spending Is Broader Than Just the Hyperscalers

While the largest technology companies are driving a major portion of the capital spending boom, the trend is not limited to them. Even excluding the hyperscalers, capital expenditures across the rest of the S&P 500 are still expected to grow at a healthy pace. Many businesses are investing in technology and AI tools to improve productivity, protect market share, and prepare for a more technology-driven competitive environment.

Growth Investment Carries Risk, But It Can Be Healthy

Share buybacks can support earnings per share by reducing the number of shares outstanding, but capital expenditures are a different type of bet. CapEx requires companies to spend now in hopes of generating future growth, which makes it riskier than simply buying back stock. Some investments may not produce the expected return, and overspending is always a concern. Still, companies investing in long-term growth can be a healthy signal for the broader economy.

Lighter Note: Who Owns the Best Movie Trilogy Résumé?

This week’s lighter topic focused on actors with the best résumé across multiple movie trilogies. Don Cheadle gets consideration for his roles in the Avengers franchise and the Ocean’s Eleven trilogy, but the top spot goes to Harrison Ford. Between the original Star Wars trilogy and the first three Indiana Jones films, Ford has one of the strongest multiple-trilogy résumés in movie history.