The Nasdaq Composite just had its worst day in over a year, cratering approximately 4.18%, a decline of more than 1,100 points. Meanwhile, the Dow Jones Industrial Average fell roughly 695 points, or about 1.35%, to close at 50,866.78 on the same day, painting a picture of a market in the middle of a decisive rotation away from high-growth tech and toward old-school value plays.
What happened and why it got ugly
The June 5 session was driven almost entirely by a sell-off in semiconductor and AI-related stocks. Nvidia dropped roughly 6%. Broadcom shed around 8%. Marvell Technology cratered approximately 17%. Micron fell more than 11%.
The catalyst was a one-two punch. A robust US jobs report landed that morning, which makes the Federal Reserve less likely to cut interest rates. Paired with disappointing earnings from Broadcom, the math on sky-high AI valuations started looking a lot less forgiving.
The rotation trade in full swing
