The S&P 500 dropped 2.64% on June 5, its worst single-day decline since October. The culprit: a broad and unforgiving sell-off in AI-related stocks that bled into nearly every corner of the market, including crypto mining equities.
That decline puts the index’s streak of nine consecutive weekly gains in serious jeopardy. A 10th straight week of gains would have been the first such run since 1985.
What happened and why it matters
The Nasdaq Composite took it even harder, falling 4.18% in what amounted to its ugliest session since April 2025.
The catalyst was, ironically, good news. A robust US jobs report shifted expectations around monetary policy, making it increasingly likely that interest rates stay elevated for longer than markets had priced in. US two-year Treasury yields surged 12 basis points to 4.16%, a move that hits growth stocks like a cold shower.
