Tech Sell-off, Jobs Report Hit Markets
Analysis based on 38 articles · First reported Jun 04, 2026 · Last updated Jun 07, 2026
The market experienced a significant downturn, with major indices like the Nasdaq Composite and S&P 500 ending long winning streaks. This was primarily driven by a sell-off in technology and semiconductor stocks, fueled by a strong jobs report that diminished hopes for United States — Federal Reserve interest rate cuts and increased the likelihood of hikes. Geopolitical tensions in the Middle East, particularly the Iran war and its impact on the Strait of Hormuz, also contributed to inflation fears and negative market sentiment.
Wall Street experienced its worst day in months, with the Nasdaq Composite and S&P 500 ending their nine-week winning streaks. The downturn was largely attributed to a sharp sell-off in technology and semiconductor stocks, triggered by a robust May jobs report from the United States — United States Department of Labor. This report, showing 172,000 jobs added, dampened expectations for United States — Federal Reserve interest rate cuts and increased the probability of rate hikes by year-end. Major tech companies like Nvidia, Intel, Micron Technology, AMD, and Broadcom saw significant declines, with the Philadelphia Semiconductor Index plunging over $1 trillion in market value. Additionally, geopolitical tensions, including the Iran war and its impact on the Strait of Hormuz, contributed to fears of rising energy prices and broader inflation. Corporate earnings reports were mixed, with Lululemon cutting its profit forecast while The Cooper Companies beat estimates. Cryptocurrency firms Coinbase and MicroStrategy also fell due to a drop in Bitcoin. WSP Global's decision not to change index eligibility rules effectively ruled out a swift S&P 500 entry for Elon Musk's SpaceX.
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