Wall Street's Record Rally Ends as Tech Stocks Plunge on Jobs Data

The S&P 500 closed down more than 2.6% on June 5, ending its longest weekly winning streak since December 2023. The Nasdaq Composite plunged nearly 4.2% in its largest single-day drop since April 2025.

The trigger: a May jobs report that added 172,000 positions, nearly double expectations. For a market banking on rate cuts, strong economic data was bad news.

Semiconductors were hit hardest. The Philadelphia Semiconductor Index lost $1 trillion in a single session. Nvidia dropped more than 6%, while AMD, Intel, Micron, and Broadcom fell between 8% and 13.5%.

Bitcoin fell more than 4% to approximately $61,900, briefly dipping below $60,000 on some exchanges. Coinbase and MicroStrategy each dropped about 7%, reflecting the broad risk-off shift.

The next CPI print and Fed guidance will be key. Hot inflation data could accelerate the repricing of rate expectations.