06.06.2026 10:30
Strong employment data from the US brought the possibility of a Fed interest rate hike back to the table, and escalating geopolitical risks in the Middle East triggered a sharp sell-off wave in global markets. While Wall Street indices crashed, led by technology stocks, gold fell to its lowest level in 10 weeks, and Bitcoin retreated to the $61,000 threshold, experiencing its biggest weekly drop since November 2022.
Global markets experienced sharp declines on the last trading day of the week after stunning U.S. employment data raised expectations that the Federal Reserve (Fed) might hike interest rates, and amid escalating tensions in the Middle East. As investors leaned toward risk aversion ahead of the weekend, the sell-off wave accelerated in stock markets, while volatile hours were recorded in gold, foreign exchange, and cryptocurrency markets.
TENSIONS RISE IN THE MIDDLE EAST
The conflict environment in the Middle East, one of the main reasons for market unease, has further escalated with recent statements. Iran's reiteration of its support for Hezbollah militias and demand for Israel's withdrawal from southern Lebanon have dashed hopes for peace in the region. From the Israeli side, a clear statement came that troops would not withdraw from Lebanon. This situation has complicated efforts between the U.S. and Iran to prevent a broader conflict.
WORST DAY ON WALL STREET
The U.S. employment data for May coming in well above expectations indicated that the economy remains hot, bringing the possibility of the Fed raising interest rates toward the end of the year back to the table. Following this development, indices on Wall Street plunged:
- The Nasdaq Composite recorded a sharp decline of 4.2%.
- The S&P 500 lost 2.64%.
- The Dow Jones Industrial Average fell by 1.4%.
The sell-off wave was led by tech and semiconductor stocks, including AI giant Nvidia and Broadcom, whose financial results fell short of expectations. Broadcom shares lost about 8% over the week. The pan-European STOXX 600 index declined by 0.29%, while MSCI's global stock gauge fell by 2.27%.
BOND YIELDS RISE, INFLATION RISK ON THE TABLE
Following the strong employment data, U.S. Treasury bond yields surged rapidly. The yield on the 2-year note, known for its sensitivity to Fed policy, reached its highest level in 15 months, trading at 4.147%.
Market experts note that the strong economic picture and geopolitical tensions are fueling inflation risk, making it difficult for the Fed to consider rate cuts and strengthening the possibility of a new rate hike before the year ends.
GOLD AT 10-WEEK LOW, OIL PULLS BACK
Gold prices plunged against the strengthening dollar and rising bond yields. With a weekly loss approaching 5%, gold's ounce fell to its lowest level in 10 weeks, closing at $4,327. In the domestic market, prices shaped up as follows:
- Free Market Gram Gold: Fell to 6,407 TL.
- Grand Bazaar Physical Gram Gold: 6,519 TL.
- Quarter Gold: 10,626 TL.
- Silver Ounce / Gram: Silver ounce saw $67.77, while gram silver closed the week at 100.38 TL.
On the oil front, prices eased after Oman announced that operations at the Mina al Fahal port continued normally following a report of an explosion. Brent crude oil fell by 2% to $93.09 per barrel, while U.S. crude oil dropped by 2.69% to $90.54. Despite this, both contracts are heading for their first weekly gain in three weeks.
LATEST ON CURRENCIES AND CRYPTOCURRENCIES
Supported by safe-haven demand and geopolitical risks, the Dollar Index surpassed the 100 mark, rising to 100.07. The euro fell 0.73% against the dollar to $1.1524, while the pound declined 0.63% to $1.3336. The Japanese yen stabilized at 160.19 against the dollar amid expectations of possible Tokyo intervention.
The cryptocurrency market was among the areas hardest hit by selling pressure:
- Bitcoin (BTC): Lost 3.88% to fall to $61,156.75. Down about 18% on a weekly basis, Bitcoin is heading for its worst week since the collapse of the FTX exchange in November 2022.
- Ether (ETH): Recorded a very sharp loss of 9.85%, falling to $1,598.01.