The futures market declined as a strong May jobs report stoked inflation fears and concerns about higher interest rates, extending the selloff that hammered the Nasdaq Composite 4.18% on June 5, 2026.
The U.S. economy added 172,000 jobs in May, far exceeding the 80,000 that economists expected, according to data released by the Labor Department. The robust employment gain sparked a sharp spike in Treasury yields and raised the probability of a Federal Reserve rate hike by year-end to 72.7%, up from 50.5% just one day earlier, per the CME FedWatch Tool.
Semiconductor stocks bore the brunt of the selloff, with the Philadelphia SE Semiconductor Index suffering its largest one-day percentage plunge since March 2020, erasing more than $1 trillion in stock market value. Nvidia fell 6.2%, while Broadcom dropped 7.9% and Micron Technology slid 13.3%, according to Reuters reporting on the June 5 decline.
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The S&P 500 shed 2.64% to close at 7,383.74, ending its nine-week streak of Friday-to-Friday gains, its longest weekly winning streak since one that ended in December 2023. The Dow Jones Industrial Average lost 695.15 points, or 1.35%, settling at 50,866.78.
Market strategists attributed the sharp rotation to profit-taking and positioning adjustments after a sustained rally in technology stocks. “After the record run we’ve seen the last nine weeks in equities, specifically tech and semiconductors, the dam just broke today,” said Ryan Detrick, chief market strategist at Carson Group, according to Reuters.
Sources
- Reuters — Nasdaq decline, semiconductor selloff, S&P 500 winning streak, jobs data, rate hike odds
- CNBC — Nasdaq Composite 4.18% decline, chip stock losses, Treasury yield movements
