US stock markets plunge as strong jobs data fuels rate‑hike fears

On June 5‑6 2026, U.S. equity markets posted sharp losses after a stronger‑than‑expected employment report showed 172,000 jobs added in May. The Nasdaq Composite fell about 4 % – its worst single‑day drop since April 2025 – while the S&P 500 slipped roughly 2.6 % and the Dow Jones Industrial Average lost around 1.3 % (about 695 points).

The decline was led by a broad sell‑off in artificial‑intelligence‑linked technology and semiconductor stocks. Shares of Broadcom, Nvidia, Intel, AMD, Micron, Marvell and other chipmakers each dropped between 6 % and 13 %. The sell‑off followed Broadcom’s weak guidance and heightened doubts that AI‑driven chip demand will continue to grow at the pace earlier investors had priced in.

The robust payroll data revived expectations that the Federal Reserve may keep interest rates high or raise them further. Treasury yields rose, with the 10‑year benchmark above 4.5 % and the two‑year note near 4.15 %. Market analysts now see roughly a 70 % probability of a Fed rate hike before year‑end, up from about 50 % before the report. Former President Donald Trump commented on social media that “with an excellent jobs report… stocks should go up, not down.”