{"id":62765,"date":"2026-06-05T15:38:27","date_gmt":"2026-06-05T19:38:27","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/s-gold-erases-2026-gains\/62765\/"},"modified":"2026-06-05T15:38:27","modified_gmt":"2026-06-05T19:38:27","slug":"s-gold-erases-2026-gains","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/s-gold-erases-2026-gains\/62765\/","title":{"rendered":"S&#038;P 500 Plunges 2.5% as SpaceX Inks Massive $920M Monthly Google Cloud Deal; Gold Erases 2026 Gains"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>The <a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&amp;P 500<\/a> (<a href=\"\/stock\/SPY\">SPY<\/a>) plummeted 2.5%<\/strong> on Friday, led by a sharp sell-off in technology and semiconductor shares following a stronger-than-expected jobs report.<\/li>\n<li><strong>SpaceX ([PRIVATE:SPACEX]) entered a massive $920 million per month cloud services pact with Google (<a href=\"\/stock\/GOOGL\">GOOGL<\/a>)<\/strong>, a deal that includes the deployment of <strong>110,000 Nvidia (<a href=\"\/stock\/NVDA\">NVDA<\/a>) GPUs<\/strong>.<\/li>\n<li><strong>Spot <a href=\"https:\/\/stockmarketwatch.com\/metal\/gold\" data-internallinksmanager029f6b8e52c=\"4\" title=\"gold price today\">gold<\/a> erased all of its 2026 gains<\/strong>, falling over 3% to its lowest level since January as robust labor data fueled bets that the <strong>Federal Reserve<\/strong> may hike interest rates.<\/li>\n<li><strong>U.S. Consumer Credit rose by $20.733 billion in April<\/strong>, significantly beating economist estimates of <strong>$17.670 billion<\/strong>, driven by a <strong>10.4% surge in revolving credit<\/strong>.<\/li>\n<li><strong>New U.S. tariff guidance<\/strong> was issued for aluminum, steel, and copper, introducing targeted reductions for certain manufacturing sectors while adding new derivative categories.<\/li>\n<\/ul>\n<h2>Tech Sell-Off Drags Markets Lower<\/h2>\n<p>U.S. equity markets faced intense selling pressure on Friday as the <strong>S&amp;P 500 (<a href=\"\/stock\/SPY\">SPY<\/a>) extended its drop to 2.5%<\/strong>. The downturn was primarily driven by a <em>rotation out of high-flying technology stocks<\/em> and disappointing earnings guidance from major chipmakers earlier in the week.<\/p>\n<p>Market sentiment soured further after the <strong>May nonfarm payrolls report<\/strong> showed the economy added <strong>172,000 jobs<\/strong>, nearly double the forecasted <strong>85,000<\/strong>. This &quot;blowout&quot; data has led traders to price in a higher probability of a <strong>Federal Reserve<\/strong> interest rate hike before the end of the year, sending <strong>Treasury yields<\/strong> higher and weighing on growth-oriented assets.<\/p>\n<h2>SpaceX and Google Ink Historic Cloud Deal<\/h2>\n<p>In a landmark agreement, <strong>SpaceX ([PRIVATE:SPACEX])<\/strong> has committed to a <strong>$920 million per month<\/strong> cloud services contract with <strong>Google (<a href=\"\/stock\/GOOGL\">GOOGL<\/a>)<\/strong>. The deal, set to run from <strong>October 2026 through June 2029<\/strong>, provides SpaceX with massive compute capacity, including <strong>110,000 Nvidia (<a href=\"\/stock\/NVDA\">NVDA<\/a>) GPUs<\/strong>, CPUs, and memory.<\/p>\n<p>Under the terms of the agreement, <strong>Google<\/strong> will retain ownership of the AI models and related data generated through the partnership. Notably, the contract includes a <em>performance clause<\/em> stating that if SpaceX cannot deliver the required GPUs by September, Google maintains the right to terminate the deal. This partnership comes just ahead of SpaceX\u2019s highly anticipated <strong>initial public offering<\/strong>, rumored for June 12 at a <strong>$1.8 trillion valuation<\/strong>.<\/p>\n<h2>Commodities and Macroeconomic Data<\/h2>\n<p>The commodities market saw significant volatility as <strong>Spot Gold<\/strong> plummeted, erasing its year-to-date gains. The precious metal fell as much as <strong>3.4% to $4,320 per ounce<\/strong>, pressured by a <em>strengthening U.S. Dollar<\/em> and rising real yields. Meanwhile, <strong>Brent Crude futures<\/strong> settled down <strong>2.04% at $93.09 per barrel<\/strong>, despite ongoing geopolitical tensions in the Middle East.<\/p>\n<p>On the domestic front, the <strong>Federal Reserve<\/strong> reported that <strong>U.S. Consumer Credit<\/strong> increased by <strong>$20.733 billion in April<\/strong>. The growth was characterized by a sharp <strong>10.4% rise in revolving credit<\/strong>, such as credit cards, suggesting that consumers are increasingly relying on debt to manage <em>persistent inflationary pressures<\/em>.<\/p>\n<h2>Trade and Geopolitics<\/h2>\n<p>The <strong>White House<\/strong> released updated guidance on <strong>Section 232 tariff regimes<\/strong> for aluminum, steel, and copper. The new proclamation provides targeted tariff reductions for agricultural machinery and residential HVAC systems but expands coverage to include <strong>aluminum lithographic plates and steel racks<\/strong>.<\/p>\n<p>In foreign policy, <strong>President Donald Trump<\/strong> remarked that the situation in <strong>Iran<\/strong> &quot;seems to be going quite well,&quot; despite reports that <strong>Hezbollah<\/strong> has rejected recent ceasefire proposals. The administration continues to push for a <em>regional non-aggression pact<\/em> as part of its broader &quot;America First&quot; diplomatic strategy.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways The S&amp;P 500 (SPY) plummeted 2.5% on Friday, led by a sharp sell-off in technology and semiconductor shares 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