The Nasdaq closed June 5 at 25,709.43, down 4.18%, its worst session of 2026. The S&P 500 fell 2.64% to 7,383.74; the Dow lost 695.15 points, or 1.35%, to 50,866.78. The trigger was strong jobs data lifting Fed rate-hike odds, pushing money out of richly valued chip names. Marvell sank about 16%, Micron about 13%, Intel and AMD around 11% each. This is a rate repricing, not a fundamentals break: a hot labor market is itself a sign of economic resilience. The market is simply re-running its discount rate.
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Chipmakers led the retreat
The selling concentrated in the AI hardware chain: Marvell roughly -16% and Micron about -13% led, with Intel and AMD near -11% each. These were the steepest gainers over the past year, so their valuations are most rate-sensitive. About $1 trillion in market value evaporated in the session, most of it from semiconductors rather than a broad-based decline.
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Jobs print drove it
The sell-off stemmed from a strong jobs report raising Fed rate-hike expectations. A tight labor market means demand has not cracked, which is positive for the real economy. The market's pain is a higher discount rate compressing high-multiple growth stocks, not a deterioration in corporate earnings prospects.
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Versus April 2025
The Nasdaq's prior worst day was in April 2025, triggered then by tariff uncertainty. This time the cause is jobs strong enough that the Fed may tighten further. The two are opposite in nature: one was a demand scare, this is demand running hot. The latter is usually the healthier kind of pullback.
Watch the inflation prints before the Fed's next meeting. If core inflation cooperates, hike odds ease and chip valuations have room to repair.
Sources
- ✓ TheStreet — Stock Market Today (June 5, 2026): Nasdaq falls 4% — 2026-06-05
- ✓ CNN Business — Nasdaq, S&P 500 suffer worst day of year as AI stocks tumble — 2026-06-05
- ✓ CNBC — Nasdaq falls 4% and suffers worst day since April 2025 — 2026-06-04
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