US payroll surge fuels tech sell‑off in US and European markets

U.S. May payroll data showed 172,000 non‑farm jobs added, far exceeding forecasts of about 80,000, while the unemployment rate held at 4.3%. The strong employment numbers prompted markets to bet on higher Federal Reserve rates, with the 10‑year Treasury yield rising above 4.5%.

In the United States, the Nasdaq Composite fell about 3%—its worst daily drop of the year—while the S&P 500 lost 1.8% and the Dow Jones Industrial Average slipped 0.9%. Technology and semiconductor shares led the declines: Broadcom dropped 6%, Marvell and Micron each fell 10%, and Intel and AMD slid 8% and 9% respectively.

European exchanges mirrored the downturn. The FTSE 100 edged up 0.07%, but Germany’s DAX fell 0.69% and Dutch‑listed ASML lost nearly 2.2%. German chipmaker Infineon tumbled 8.7% after a broader sell‑off in semiconductor stocks. The market reaction occurred alongside Euro‑zone data showing a 0.2% Q1 GDP contraction and heightened scrutiny of upcoming European Central Bank policy decisions.

Other moves included a 25.8% surge in Raspberry Pi shares after a profit forecast beat, and a 12.9% fall in Bodycote following the withdrawal of a proposed acquisition by Apollo Global Management.