US stocks tumble as strong jobs data sparks rate‑hike fears

U.S. stock markets fell sharply on Friday, June 5, 2026, ending a nine-week winning streak as a surprisingly strong jobs report fueled expectations of higher interest rates and triggered a major selloff in technology shares. The tech-heavy Nasdaq Composite plunged 4.2%, its worst single-day drop since April 2025, while the S&P 500 sank 2.6% and the Dow Jones Industrial Average lost 1.4%.

The selloff was driven by a Labor Department report showing the U.S. economy added 172,000 jobs in May, roughly double what many economists had forecast, while the unemployment rate held steady at 4.3%. Investors interpreted the robust data as a sign the Federal Reserve is less likely to cut interest rates and may instead raise them later this year to combat inflation. Market-based indicators showed the probability of a rate hike by December rising significantly, with some tools pricing the likelihood as high as 98%.

Technology and semiconductor stocks bore the brunt of the losses. The Philadelphia Semiconductor Index suffered its worst day since March 2020, erasing an estimated $1 trillion to $1.3 trillion in market value. Major decliners included Nvidia, down 6.2%; Broadcom, down 7.9%; and...