Finance

The tech-heavy Nasdaq Composite plunged 4.2% as investors aggressively rotated out of growth-oriented assets. Semiconductor giants like Nvidia and Broadcom faced significant pressure, with the Philadelphia Semiconductor Index dropping over 10% during the session. Analysts noted that disappointing guidance from some industry leaders has fueled concerns that demand for artificial intelligence infrastructure may be cooling from its recent record highs.

U.S. Treasury yields jumped following the stronger-than-expected employment data, with the 10-year yield rising past 4.5%. The 2-year yield reached its highest level in a year at 4.16% as traders increased bets on a year-end interest rate hike. This shift in the yield curve has created a challenging environment for risk assets, leading to a notable deleveraging event across the equity markets.

Digital assets experienced a sharp decline alongside equities, with Bitcoin falling below the $60,000 threshold on June 5, 2026. The sell-off was exacerbated by record outflows from spot Bitcoin ETFs, which recently saw a 13-day losing streak totaling over $4.3 billion in exits. Market analysts pointed to a combination of high-risk sentiment, rising interest rates, and geopolitical tensions in the Middle East as primary drivers for the current crypto downturn.