#NasdaqWorstDayInOverAYear #NasdaqWorstDayInOverAYear was Friday, June 5, 2026 📉
What happened:
🔥Nasdaq Composite sank 4.2% to 25,709.43, its worst single-day drop since April 10, 2025. In points, it fell 1,121, the biggest point drop on record.
🔥S&P 500 dropped 2.6% and snapped a 9-week winning streak
🔥Dow fell 1.4%, or 695 points.
🔥 About $1.75 trillion was wiped from US stocks, with semis leading the rout.
Why it crashed — 4 main drivers flagged by traders:
1. Strong jobs report: May payrolls added 172,000 jobs, more than double expectations. Good for the economy, bad for stocks because it kills hopes of Fed rate cuts. Traders raised odds of a December hike to 43%.
2. Bond yields spiked: 10-year Treasury jumped to 4.53%-4.54%. Higher yields hit tech/AI stocks with lofty valuations.
3. AI/semiconductor unwind: The “parabolic seven” semis like Marvell, Micron, Sandisk got crushed after huge 2026 runs. PHLX Semiconductor Index fell 10.3%, worst day since March 2020. Broadcom earnings didn’t raise AI outlook, adding to disappointment. 4. Portfolio rebalancing: SpaceX’s confirmed S&P 500 inclusion for June 22 pushed funds to sell year-to-date winners to make room.
Market reaction:
Tech got hammered — Nvidia -6%, Broadcom -8%, Marvell -16.7%. Consumer staples was the only S&P sector up 2.3%. The VIX fear gauge surged 30% to a 2-month high.
Context: Despite the selloff, analysts note we’re just back to levels from a few weeks ago after a 10%+ run in 2026. “Bull market, couple days counter trend doesn’t change that,” per CIBC’s Donabedian.
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