Nvidia closed at $205.10 on June 5, shedding $13.56 per share in a single session. That 6.2% decline from the previous close of $218.66 marks one of the steepest single-day drops the chipmaker has endured this year, and it landed during a stretch of broader semiconductor weakness.
Trading volume told its own story. More than 218 million shares changed hands as two distinct catalysts collided: a macro surprise from the labor market and a political headache from Capitol Hill.
What drove the selloff
The first punch came from the US jobs report released on June 3. The numbers were stronger than economists anticipated, giving the Federal Reserve less reason to cut rates anytime soon. Nvidia, trading at lofty multiples thanks to its AI dominance, fits the profile of a stock whose valuation is built on future earnings growth and is therefore sensitive to rate expectations.
The second punch arrived courtesy of Senator Elizabeth Warren, who invited CEO Jensen Huang to testify before the Senate Banking Committee on June 11. The subject: whether Nvidia’s chip exports to China comply with US restrictions designed to prevent military applications.
