The stock market declined sharply this week as a tech-driven sell-off on June 5 preceded fresh geopolitical tensions in the Middle East. The Nasdaq fell 4.18% on Thursday, its worst day since April 2025, while the S&P 500 sank 2.6%, marking its biggest drop since October. The sell-off was triggered by a stronger-than-expected U.S. jobs report that raised concerns about higher interest rates, hitting semiconductor stocks and other technology leaders particularly hard.
Nvidia fell 6.2%, Broadcom dropped 7.9%, and Micron Technology slid 13.3% for the largest loss in the S&P 500, according to reporting from Fortune and ABC. The Dow Jones Industrial Average declined 1.35%, or 695 points. The broader market weakness reflected investor worries that the Federal Reserve may maintain higher rates longer than previously expected, cooling the tech rally that had dominated gains earlier in the year.
Three days later, on June 8, Israel and Iran exchanged missile fire, marking a serious escalation after a two-month lull since an April ceasefire, according to NPR and Al Jazeera. The strikes raised oil prices and heightened concerns about regional stability. Israel responded to Iranian missile attacks with strikes on military targets, according to Axios, complicating ongoing peace efforts. The renewed tensions added another layer of uncertainty to markets already rattled by the shift in rate expectations.
The combination of domestic economic signals and geopolitical risk has left investors navigating multiple headwinds as the stock market enters the second half of June.
Sources
- CNN — Nasdaq decline of 4.18% on June 5, worst day since April 2025
- Reuters — S&P 500 and Nasdaq declines on June 5; Dow down 1.35%
- Fortune — Individual tech stock declines (Nvidia 6.2%, Broadcom 7.9%, Micron 13.3%)
- WTOP — S&P 500 fell 2.6%, biggest drop since October
- NPR — Israel and Iran exchange missile fire on June 8
- Al Jazeera — Iran-Israel ceasefire falters with renewed attacks on June 8
- Axios — Israel strikes Iran military targets after Iranian missile attack; first since April 8 ceasefire
