The Nasdaq fell 4.2% on June 5, 2026, marking its worst day since April 2025 as a stronger-than-expected jobs report sparked stock market news today with a broad tech selloff. The May employment report showed nonfarm payrolls surged 172,000, more than double the consensus forecast of 85,000, causing investors to flee high-growth technology stocks and semiconductor makers.
The unemployment rate remained steady at 4.3%, matching expectations, but the outsized job gains shifted expectations sharply toward Federal Reserve rate hikes. Traders raised the odds of at least one rate increase by year-end to roughly 67-70%, up from about 45% the previous week, according to market pricing.
Semiconductor stocks bore the brunt of the selling pressure. Micron Technology dropped 13.3%, while Broadcom fell 7.9% and Nvidia slid 6.2%, according to BNN Bloomberg. The broader S&P 500 shed 2.6% to close at 7,383.74, while the Dow Jones Industrial Average fell 695 points.
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The market’s reaction reflected a shift in how investors view the economic backdrop. A resilient labor market normally signals strength, but in the current environment, strong job growth raises the risk that the Federal Reserve will keep interest rates higher for longer. Technology and growth-oriented companies, which have led the market higher this year, are particularly sensitive to rate expectations because higher borrowing costs reduce the present value of their future earnings.
The Nasdaq 100 capped off its worst week in over a year following the jobs report, with a strong jobs report fueling rate hike fears across the market. Treasury yields surged sharply in response to the data, compounding pressure on equities.
Sources
- CNBC — Nasdaq fell 4% and worst day since April 2025 as traders flee chip stocks
- BNN Bloomberg — Semiconductor stock losses and broader market selloff details
- Bureau of Labor Statistics — May 2026 employment report confirming 172,000 nonfarm payrolls and 4.3% unemployment rate
- Reuters — Jobs report details and Fed rate hike implications
- CNBC — Fed rate hike odds rising to 70% by year-end
- MarketWatch — S&P 500 and Dow Jones closing figures
- Axios — CME FedWatch tool showing 67% odds of rate increase by year-end
