The S&P 500 and Nasdaq fell on June 5, 2026, as chip stocks sold off sharply following disappointing earnings from Broadcom, which reported fiscal second-quarter revenue below expectations. The semiconductor sector decline pulled the broader market lower even as a stronger-than-expected jobs report pushed Treasury yields higher.
Quick Facts
- Broadcom fell more than 12% after missing revenue expectations, triggering the semiconductor sector selloff.
- Chip stocks including Intel (down 6%) and Micron (down 7%) declined sharply in sympathy with Broadcom.
- Nonfarm payrolls increased by 172,000 in May, beating expectations, while unemployment held steady at 4.3%.
- Treasury yields surged following the strong jobs data, with the 10-year yield near 4.5%.
The market’s reaction reflected the tension between positive labor market data and rising rate expectations. Strong employment gains typically signal economic strength but can also prompt expectations of higher interest rates, which pressures growth stocks and technology companies that dominate the Nasdaq.
Chip stocks have been central to the 2026 rally, with semiconductor companies benefiting from artificial intelligence investment. The Broadcom earnings miss raised concerns about demand for AI-related chips and sparked a broader reassessment of valuations in the sector. Tech stocks fell as Treasury yields surged following the jobs data, creating a difficult environment for rate-sensitive equities.
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The jobs report showed the unemployment rate remaining unchanged at 4.3 percent, indicating a stable labor market. Treasury yields climbed as investors repriced expectations for Federal Reserve policy, with stronger employment data reducing the likelihood of near-term interest rate cuts.
Sources
- XTB.com — Intel down 6% amid semiconductor stocks selloff on June 5.
- Yahoo Finance Canada — Chip stocks pressured as Broadcom earnings spook AI investors; Intel, AMD, Micron shares sink.
- CNBC — S&P 500 and Nasdaq futures drop as chip selloff continues, yields jump on jobs data.
- Charles Schwab — Chip stocks including Micron (down 7%) and Super Micro Computer slid sharply in sympathy with Broadcom.
- Bureau of Labor Statistics — Total nonfarm payroll employment increased by 172,000 in May; unemployment rate unchanged at 4.3 percent.
- Let’s Data Science — Asian technology stocks dropped on June 5, 2026, following sharp selloff in U.S. semiconductor shares triggered by Broadcom’s decline.
