NetApp (NTAP), Dell (DELL) Lead Tech Hardware Selloff as Hot Jobs Data Douses Rate Cut Hopes

Technology hardware stocks fell sharply on June 5, 2026, after the May U.S. jobs report showed payrolls soaring past estimates, fueling fears the Federal Reserve will keep interest rates elevated longer. The 10-year Treasury yield climbed above 4.5% as the economy added 172,000 jobs, more than double the consensus of 80,000, heightening valuation risk for high-multiple names. NetApp (NTAP) shares tumbled in a move considered significant given the stock’s low historical volatility. The decline erased a portion of the 26.4% surge on May 29, when the data storage firm reported fiscal first-quarter results that topped expectations. Revenue rose 12.5% year-over-year to $1.95 billion, adjusted earnings per share of $2.43 beat forecasts, and second-quarter revenue guidance came in 8.5% above consensus. Adjusted operating margin widened to 27.3% from 20.1% a year earlier. Dell (DELL) and other hardware peers also slid, as a recalibration of AI chip revenue expectations following Broadcom’s earnings compounded pressure on the sector. Despite the drop, NetApp remains up 59.6% year-to-date and trades near its 52-week high of $181.08.