Wall Street suffered its steepest decline in months on June 5, after a jobs report that was too good for its own good.
The S&P 500 closed down 2.6%, wiping out roughly $1.8 trillion in market value. The NASDAQ 100 tumbled 4.8%, its worst single-day slide since April 2025. Bitcoin, increasingly moving in lockstep with equities, dropped 4.3% to roughly $60,850.
A jobs report nobody wanted
The Bureau of Labor Statistics reported 172,000 new nonfarm payrolls in May, nearly double consensus estimates of 80,000 to 88,000. The unemployment rate held steady at 4.3%.
The selloff cut deepest where valuations were richest. Semiconductor stocks led the rout: Nvidia shares cratered 6.2%, and Broadcom's revenue miss compounded the sector's pain.
The end of the easy money rally
Today's correction shattered a multi-week rally built on twin pillars: AI euphoria and widespread bets on near-term monetary easing. The jobs data undercut the rate-cut thesis, while Broadcom's miss raised doubts about whether AI spending is translating into real earnings growth across the chip supply chain.
What this means for crypto investors
Bitcoin's 4.3% decline reinforced its correlation with tech stocks-behaving more like a leveraged tech ETF than digital gold. Markets had priced in a Goldilocks scenario of AI-driven earnings growth alongside Fed loosening. A 172,000-job print blew up the weak-economy half of that equation.
The last time tech fell this hard-April 2025-the market recovered within weeks.