Wall Street ended sharply lower on June 5, snapping a nine-week winning streak as a stronger-than-expected US jobs report and rising geopolitical tensions triggered a broad sell-off in technology stocks.
According to Reuters, the Dow Jones Industrial Average tumbled 695.15 points, or 1.35%, to 50,866.78, while the S&P 500 sank 200.57 points, or 2.64%, to 7,383.74. The tech-heavy Nasdaq Composite plunged 1,121.53 points, or 4.18%, to 25,709.43, marking its steepest one-day decline since April 2025.
Technology stocks bore the brunt of the sell-off after May nonfarm payrolls rose by 172,000, more than double market expectations, while unemployment held steady at 4.3%.
The robust labour data reinforced expectations that the Federal Reserve (Fed) will keep interest rates higher for longer, with markets now pricing in a 42.7% chance of a rate hike by December.
The Philadelphia Semiconductor Index suffered its worst daily drop since March 2020, wiping out more than US$1 trillion in market value. Nvidia fell 6.2%, while Intel, Micron, AMD and Broadcom slumped between 7.9% and 13.3%, dragging the S&P 500 technology sector down 5.8%.
Investor sentiment was also dampened by lingering concerns over the Middle East conflict and uncertainty surrounding the reopening of the Strait of Hormuz, raising fears that elevated energy prices could fuel broader inflationary pressures.
Among notable movers, Lululemon Athletica dropped 8.6% after cutting its full-year profit outlook and issuing weak second-quarter guidance. In contrast, Cooper Companies surged 8.6% after reporting better-than-expected quarterly earnings.
Cryptocurrency-linked stocks also retreated as bitcoin fell 4.1%, with Coinbase and Strategy losing 7.1% and 6.9%, respectively.
Consumer staples emerged as the market’s lone bright spot, leading gains among the S&P 500’s 11 sectors as investors sought defensive positions.
Market breadth remained firmly negative, with decliners outpacing advancers by more than three-to-one on both the New York Stock Exchange and Nasdaq. Trading activity was heavy, with volume reaching 22.89 billion shares, well above the 20-day average of 20.29 billion.
Despite the sharp pullback on June 5, many investors remain optimistic that the longer-term technology rally could resume, although expectations for near-term Fed rate cuts have faded significantly.
