S&P 500 Tumbles 2.6% for Largest Drop Since October 2025 as Tech Selloff Intensifies, Rate Fears Spike

The S&P 500 sank 2.6% on June 5, 2026, its biggest one-day decline since October 2025, as technology shares came under heavy selling and investors braced for a prolonged period of elevated interest rates. The slide erased recent gains and underscored growing unease over the Federal Reserve’s policy path. The technology sector, a primary driver of the market’s earlier upswing, led the downturn as climbing bond yields made high-growth stocks less attractive. The broad selloff pulled the benchmark index deeper into the red for June and reignited volatility after months of relative calm. Traders increasingly priced in the likelihood that the central bank will hold rates steady through year-end, throttling expectations for imminent cuts.