Finance

The tech-heavy Nasdaq Composite dropped nearly 3% on June 5, 2026, marking its worst daily performance since October. This decline was primarily driven by a sharp selloff in AI and semiconductor bellwethers like Nvidia and Broadcom following disappointing forward-looking guidance and a reassessment of lofty sector valuations.

Treasury yields spiked across the curve following the robust employment data, with the benchmark 10-year yield rising to 4.54% and the policy-sensitive 2-year yield hitting a 15-month high at 4.15%. Analysts suggest the stronger labor market could force Federal Reserve Chair Kevin Warsh to raise rates before the end of 2026 to combat inflationary pressures.

The price of Bitcoin fell over 4% to approximately $62,000 on June 5, contributing to its worst weekly drop since 2022. Market participants are increasingly shifting capital away from digital assets toward high-growth AI stocks and upcoming major equity listings like SpaceX.