The stock market today fell as the S&P 500 and Nasdaq dropped on a sharp selloff in semiconductor stocks, despite a surprisingly strong May jobs report that showed the U.S. economy added 172,000 positions.
The jobs report, released Friday morning, beat expectations and pointed to labor market resilience. However, the strong data triggered concerns about persistent inflation and higher interest rates, prompting investors to rotate out of chip stocks and technology shares.
Semiconductor stocks including Intel, Micron Technology, AMD, and Broadcom declined between 2% and 3.8% as traders reassessed valuations following the robust employment figures. The Philadelphia Semiconductor Index had surged 69% year-to-date through mid-May, accounting for roughly 70% of the S&P 500’s market capitalization gains in 2026.
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The reversal underscores the tension in markets between celebrating labor market strength and worrying about the inflation implications that could keep the Federal Reserve from cutting interest rates soon. Chip stocks, which had led the broader rally, became the focal point of selling pressure as investors took profits.
Sources
- Bureau of Labor Statistics — confirmed 172,000 nonfarm payroll increase in May 2026
- CNBC — reported S&P 500 futures and Nasdaq 100 futures fell on Friday amid chip stock sell-off and strong jobs report
- Trading Economics — noted US equities inched down Friday after strong jobs report as chip producers extended declines
- Charles Schwab — reported chip stocks including Micron declined sharply in sympathy with Broadcom
- Reuters — noted gains in semiconductor and memory stocks accounted for 70% of S&P 500’s market cap additions in 2026
