The Nasdaq Composite cratered 4.18% on June 5, its steepest single-session decline since April 2025, as a one-two punch of strong labor data and disappointing semiconductor guidance sent investors running for the exits.
The S&P 500 shed 2.64% while the Dow Jones Industrial Average dropped 1.35%. For the S&P, it marked the end of a nine-week winning streak and the index’s worst one-day performance since October 2025.
What triggered the sell-off
Two catalysts collided. First, the May jobs report came in significantly stronger than economists anticipated. A hot jobs number raises the probability that the Fed keeps rates elevated, or even hikes them further. Higher rates make future earnings worth less in today’s dollars, and no sector gets punished harder by that math than tech, where valuations are built on growth projections years into the future.
The second catalyst was Broadcom. The chipmaker issued forward guidance that disappointed Wall Street. Broadcom shares fell 7.9%, but the damage radiated outward across the entire semiconductor complex. Nvidia dropped 6.2%. Micron fared even worse, plummeting 13.3% in a single session.
