Strong May Nonfarm Payrolls Spark Tech Meltdown, Snap S&P 500’s 9-Week Win Streak

The S&P 500 tumbled 2.6% on Friday, June 5, 2026, ending its nine-week winning streak after stronger-than-expected US employment data dashed hopes for Federal Reserve rate cuts and fueled bets on a year-end rate hike. The Philadelphia Semiconductor Index crashed 10.26%, its worst session since April 2025, dragging the Nasdaq Composite down 4.18%. The Labor Department reported 172,000 new jobs in May, far above the 80,000 consensus, sending Treasury yields soaring. The 10-year yield broke above 4.5%, and the 2-year yield hit 4.16%, the highest since February 2025. CME FedWatch showed a rising probability of a rate increase in December. Technology shares bore the brunt: Nvidia (NVDA) fell 6.20%, AMD (AMD) dropped 10.86%, and TSMC ADR (TSM) sank 6.69%. Broadcom (AVGO), which slid an additional 7.92% after weak AI guidance, deepened the chip rout. Bitcoin’s decline below $60,000 added to the selloff, hitting crypto-related names.