S&P 500’s Worst Day of the Year & GLP-1s Are Costing Retailers in Returns

The S&P 500 suffered its worst single-day drop of the year on Friday, wiping out $1.1 trillion from the nine largest tech companies alone. The selloff was triggered by a surprisingly strong jobs report that pushed rate-cut expectations further out, combined with growing jitters that the AI trade has become dangerously concentrated. Meanwhile, GLP-1 weight loss drugs are creating a costly second-order effect for retailers: as customers rapidly shrink out of their clothes, return rates are surging, eating into margins and forcing the apparel industry to rethink inventory planning.

The AI Trade Gets Its First Real Stress Test

Friday's selloff was the S&P 500's worst day of the year, with the index falling 2.6% and the Nasdaq dropping 4.2%. The nine tech companies worth at least $1 trillion lost an average of 5.3% on the day, evaporating $1.1 trillion in market value. The trigger was a double blow: Broadcom's earnings, while still strong, disappointed on forward guidance, and a blowout jobs report showed 172,000 jobs added in May — more than double the 80,000 forecast — pushing the Fed further from cutting rates.