Finance

The tech-heavy Nasdaq Composite suffered a 4.2% decline on June 5, its worst daily performance since October. Investors retreated from artificial intelligence and semiconductor stocks following Broadcom's latest financial outlook, which failed to meet elevated market expectations for AI chip demand. Major industry players including Nvidia, Micron, and AMD saw significant losses, with some semiconductor stocks plunging 10% or more.

Following the hotter-than-expected May employment data, the 10-year Treasury yield rose to approximately 4.55%. Shorter-term debt also saw significant movement, with the 2-year yield reaching its highest level since early 2025 at 4.17%. Markets are now pricing in a higher probability of a quarter-point rate increase by the end of 2026 as the narrative shifts away from imminent cuts.

Bitcoin prices fell below the $60,000 mark on June 5 as risk-sensitive assets were hit by both hawkish economic data and rising Middle East tensions. Ethereum also faced significant downward pressure, dropping below $1,700 as investors liquidated positions in response to regional instability and shifting Federal Reserve expectations. Analysts noted that Bitcoin is increasingly behaving as a risk asset rather than a safe-haven during this period of volatility.