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NASDAQ Composite drops 4.2% as strong jobs data lifts yields and rate bets

NASDAQ Composite drops 4.2% as strong jobs data lifts yields and rate bets

Robust U.S. payrolls pushed Treasury yields higher and cut easing expectations, hitting technology, crypto and semiconductor shares; Nvidia fell more than 6%, erasing about $320 billion in value amid Senate scrutiny.

Fact Check
The BLS Employment Situation Summary confirms the +172,000 May 2026 payrolls (well above ~80K forecast). WSJ and MarketWatch independently report the Nasdaq Composite closed 4.2% lower on June 5, 2026, and Investopedia's headline 'Nasdaq Ends Day 4% Lower' matches the claim. All sources tie the drop to the strong jobs report and rising Treasury yields (10-year above 4.5%), exactly the mechanism in the claim.
Summary

The Nasdaq Composite fell 4.2% on Friday after strong U.S. nonfarm payrolls lifted Treasury yields and prompted investors to scale back expectations for Federal Reserve rate cuts, with newer reporting also saying the data revived bets on rate hikes this year. The selloff hit growth-oriented assets including technology shares and crypto, and was led by semiconductor stocks. Nvidia fell more than 6%, wiping out about $320 billion in market value and pushing it below a $5 trillion market capitalization, as jobs data and Senate scrutiny rattled investors. Morgan Stanley’s Mike Wilson said the decline reflected crowded chip positions after the Philadelphia Semiconductor Index had risen nearly 96% this year. Separately, Citi raised its end-2026 S&P 500 target to 8,100 from 7,700, signaling a more constructive longer-term view despite the near-term market drop.

Terms & Concepts
  • nonfarm payrolls: U.S. monthly employment data excluding farm jobs.
  • Treasury yields: Returns investors earn on U.S. government debt.
  • market capitalization: The total value of a company's outstanding shares, commonly used to measure its market size.