Markets Weekly June 6, 2026

Summary

Joseph Wang analyzes the June 5th market sell-off driven by a 5% drop in the Korean KOSPI and a strong US labor print, triggering a deleveraging event. He warns of further downside in Korean stocks, gold, silver, and Bitcoin due to margin calls and technical breaks. He also discusses equity supply headwinds and potential Fed policy changes under the new Kevin-led Fed, including ending interest on reserves.

• Korean stock market dropped 5% on leveraged retail unwinding.
• Strong US jobs data led markets to price in Fed rate hikes.
• Gold, silver, and Bitcoin suffered large declines; gold lost 200-day moving average.
• Further 5-10% fall in KOSPI possible from margin calls.
• Equity supply from SpaceX IPO, Google, and Facebook may weigh on markets.
• New Fed chair Kevin is hiring Project 2025 author, signaling policy shift.
• Potential Fed changes include smaller balance sheet, Treasury-only portfolio, and ending IOER.
• Near-term dip buyers may counter but deleveraging risks remain.