{"id":5069,"date":"2026-06-06T15:15:38","date_gmt":"2026-06-06T15:15:38","guid":{"rendered":"https:\/\/tradertideinsights.com\/?p=5069"},"modified":"2026-06-06T15:15:38","modified_gmt":"2026-06-06T15:15:38","slug":"dow-tumbles-680-points-as-chip-rout-sends-nasdaq-to-biggest-drop-since-2025","status":"publish","type":"post","link":"https:\/\/tradertideinsights.com\/?p=5069","title":{"rendered":"Dow tumbles 680 points as chip rout sends Nasdaq to biggest drop since 2025"},"content":{"rendered":"
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US stocks closed sharply lower on Friday as a broad selloff in semiconductor shares and a stronger-than-expected jobs report sparked concerns that the Federal Reserve could maintain a hawkish stance on interest rates.<\/p>\n

The technology-heavy Nasdaq Composite fell more than 4%, marking its largest one-day decline since the tariff-driven market turmoil of early 2025. <\/p>\n

The S&P 500 dropped 2.6%, while the Dow Jones Industrial Average lost about 685 points, or 1.3%, after having closed at a record high a day earlier.<\/p>\n

The sharp decline also brought an end to the S&P 500’s nine-week winning streak, its longest run of Friday-to-Friday gains since late 2023.<\/p>\n

Semiconductor stocks lead market lower<\/h2>\n

Selling pressure was concentrated in semiconductor stocks, which have been among Wall Street’s strongest performers this year amid enthusiasm surrounding artificial intelligence infrastructure spending.<\/p>\n

The Philadelphia Semiconductor Index slumped about 9% on Friday after falling 2% in the previous session.<\/p>\n

Broadcom shares declined more than 7%, extending Thursday’s 12% drop after investors reacted negatively to the company’s latest earnings report and AI revenue outlook. <\/p>\n

The company beat quarterly expectations but did not raise its full-year AI semiconductor forecast, disappointing investors who had anticipated stronger guidance.<\/p>\n

The weakness spread across the sector. Micron Technology dropped roughly 11%, adding to an 8% decline on Thursday, while Intel fell more than 9% and Advanced Micro Devices slid around 10%. <\/p>\n

Marvell Technology also lost about 12%.<\/p>\n

Strong jobs report fuels rate concerns<\/h2>\n

Investor sentiment was further pressured after the US Labor Department reported that nonfarm payrolls increased by 172,000 in May, well above expectations for about 80,000 new jobs. <\/p>\n

The unemployment rate remained steady at 4.3%.<\/p>\n

While the data reinforced confidence in the strength of the US economy, it also reduced expectations for near-term Federal Reserve easing. <\/p>\n

Treasury yields climbed sharply following the report, with the 10-year yield moving above 4.5% and the 30-year yield rising above 5%.<\/p>\n

Financial markets are now pricing in a growing likelihood of a rate hike by the Fed before the end of the year.<\/p>\n

Investors rotate toward defensive sectors<\/h2>\n

The market decline was accompanied by a shift toward more defensive investments. <\/p>\n

Healthcare and consumer staples stocks outperformed, with Colgate-Palmolive and Coca-Cola each rising more than 3%, while Johnson & Johnson gained about 2%.<\/p>\n

Cryptocurrency-related stocks also weakened as bitcoin fell below $60,000<\/a> for the first time since late 2024. <\/p>\n

Coinbase Global<\/a> and Strategy moved lower alongside the digital asset.<\/p>\n

Some investors also pointed to next week’s highly anticipated SpaceX initial public offering as a potential factor behind the rotation out of technology leaders.<\/p>\n

Geopolitical concerns also remained in focus as uncertainty surrounding the Middle East conflict continued to cloud the market outlook, adding to investor caution heading into the weekend.<\/p>\n

The post Dow tumbles 680 points as chip rout sends Nasdaq to biggest drop since 2025<\/a> appeared first on Invezz<\/a><\/p>\n

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US stocks closed sharply lower on Friday as a broad selloff in semiconductor shares and a stronger-than-expected jobs report sparked concerns that the Federal Reserve could maintain a hawkish stance on interest rates.The technology-heavy Nasdaq Composite fell more than 4%, marking its largest one-day decline since the tariff-driven market turmoil of early 2025. The S&P…<\/p>\n","protected":false},"author":1,"featured_media":5070,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-5069","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock"],"_links":{"self":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts\/5069","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5069"}],"version-history":[{"count":0,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts\/5069\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/media\/5070"}],"wp:attachment":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5069"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5069"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5069"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}