Finance

The technology sector experienced its worst performance in over a year, led by a massive decline in artificial intelligence and chip-making stocks. Companies like Nvidia, Broadcom, and Intel saw shares tumble between 5% and 11%, significantly weighing on the broader market indexes. Traders moved away from the recent AI-driven rally, causing the semiconductor ETF to drop nearly 10% in a single session.

The U.S. economy added 172,000 jobs in May 2026, nearly double the consensus estimate, while the unemployment rate held steady at 4.3%. This unexpected labor market resilience, combined with upward revisions for previous months, led market participants to conclude that Federal Reserve rate cuts are unlikely in the near term. Consequently, Treasury yields jumped as the probability of a rate hike later this year increased to over 68%.

Cryptocurrency markets faced intense selling pressure on June 5, 2026, with Bitcoin briefly dipping below the $60,000 threshold. Ethereum also saw a notable descent, falling to approximately $1,666 as broader risk aversion swept through financial markets following the strong jobs report. Analysts noted that the selloff was further exacerbated by geopolitical tensions in the Middle East and a surge in market volatility as measured by the VIX.