Wall Street had a rough day on June 5, and “rough” might be underselling it. The Nasdaq Composite dropped approximately 4%, its steepest single-session fall since April 2025, as a broad sell-off tore through the technology sector and sent shockwaves into crypto markets.
The S&P 500 fell roughly 2.6%, snapping a nine-week winning streak. The Dow Jones Industrial Average shed about 1.35%. And Bitcoin, never one to miss a party or a panic, slipped below $60K for the first time since October 2024.
Semiconductors bore the brunt
The epicenter of the damage was semiconductors. The PHLX Semiconductor Index, better known as the SOX, cratered as much as 10% during the session. Nvidia and Broadcom, two of the biggest beneficiaries of the AI spending boom, found themselves under heavy selling pressure.
The catalyst was a surprisingly strong May jobs report. In normal times, a healthy labor market would be welcome news. But in the current environment, where investors are laser-focused on the Federal Reserve’s next move, strong employment data translates to one thing: interest rates might stay elevated, or even climb higher.
