Wall Street's Fear of a Strong Economy: NASDAQ Plunges 4% on Hot Jobs Data

Stronger-than-expected jobs data sent shockwaves through Wall Street. The economy added 172,000 jobs in May, nearly double the forecast of 85,000. The unemployment rate held steady at 4.3%.

But in a market fixated on the Federal Reserve, strong data is a threat. It signals the Fed has less reason to cut rates. The 10-year Treasury yield surged past 4.5%, crushing growth stocks. The NASDAQ Composite plunged 4.2% on June 5.

Tech companies were hit hardest. Nvidia dropped 6%, Broadcom also fell sharply. The S&P 500 snapped a nine-week winning streak.

Bitcoin wasn't spared. It briefly dipped below $60,000 before recovering above $61,000. The correlation between crypto and the NASDAQ remains tight, reinforcing Bitcoin's role as a high-beta risk asset, not digital gold.

For investors, the message is clear: Borrowing costs are climbing, from corporate AI infrastructure to homebuyers to leveraged crypto traders. Rate expectations are being aggressively revised upward. The momentum trade in AI and semiconductors may be reversing, and these reversals can be violent.