US markets June 5, 2026: Nasdaq drops 4.18% as a $1 trillion chip rout meets a hot jobs print
S&P 500 close: 7,383.74 (-2.64%) Breadth: 5 of 11 sectors higher; Technology (-6.66%) the lone heavy decliner Sentiment: bearish
The S&P 500 closed at 7,383.74 on 5 June 2026, down 200.57 points or 2.64%, as a semiconductor selloff erased close to $1 trillion in value and dragged the Nasdaq Composite down 4.18% to 25,709.43, its worst session since April 2025. Marvell MRVL.US fell 16.74% to lead a chip selloff where Micron MU.US lost 13.25% and Nvidia NVDA.US shed 6.20%, an unwind that built after Broadcom AVGO.US declined to raise its annual AI-chip sales target earlier in the week. A hotter-than-expected May payrolls report (172,000 jobs against a consensus near 85,000) pushed the 10-year Treasury yield to 4.54% and turned strong data into a selling catalyst for rate-sensitive growth.
What drove the move
- Technology (-6.66%): with roughly a third of the index by weight, the sector alone accounts for about 213 of the S&P's 264 basis-point decline. The chip names did the damage: Marvell MRVL.US -16.74%, Micron MU.US -13.25%, ARM ARM.US -12.84%, AMD AMD.US -10.86%, Broadcom AVGO.US -7.92%, Nvidia NVDA.US -6.20%. The trigger was Broadcom's refusal earlier in the week to lift its roughly $100 billion annual AI-chip sales target, with third-quarter AI guidance of $16 billion against a $17.2 billion estimate.
- Hot payrolls, higher yields: the 172,000 May jobs (double the consensus near 85,000) lifted the 10-year yield 6 basis points to 4.54% and the 30-year above 5%, with the dollar index up 0.66% to 100.07. Higher discount rates hit rate-sensitive cyclicals: Consumer Discretionary -2.05%, Materials -1.92%, Energy -1.84%, Industrials -1.12%.
- Defensive rotation (about 23 bps of offset): Consumer Staples +1.71%, Utilities +0.93%, Real Estate +0.68%, Health Care +0.61% and Financials +0.21% all closed green. Procter & Gamble PG.US +4.09%, Coca-Cola KO.US +3.46% and Allstate ALL.US +4.82% led the defensive names higher.
Technology alone explains about 213 of the index's 264 basis-point decline, the cyclicals supply most of the rest, and the five green defensive sectors add back roughly 23 basis points. That offset is why the staples-heavy Dow fell only 1.35% while the tech-heavy Nasdaq lost 4.18%.
Session highlights
- The S&P 500 closed at 7,383.74 on 5 June 2026, down 2.64%, alongside the Nasdaq Composite's worst single-day percentage drop since April 2025.
- The CBOE Volatility Index jumped 39.68% to 21.51, a 6.11-point spike as investors paid up for downside protection.
- Every major chip name fell: beyond Marvell and Micron, Intel INTC.US lost 11.28%, Qualcomm QCOM.US 10.98% and Taiwan Semiconductor TSM.US 6.69%.
- The Russell 2000 dropped 3.47% to 2,833.50 as the yield jump pressured smaller, rate-sensitive names.
- Treasury yields did the macro work: the 10-year reached 4.54% and the 30-year topped 5% after the payrolls beat.
Sector scorecard
- Best: Consumer Staples (+1.71%)
- Worst: Technology (-6.66%)
- Dispersion (best minus worst): 8.37 pts
- Five of eleven sectors closed higher, all defensive (Staples, Utilities, Real Estate, Health Care, Financials). The six decliners were led by Technology, then Consumer Discretionary -2.05% and Materials -1.92%.
Top movers
| Ticker | Move | Reason |
|---|---|---|
| COO.US | +8.58% | Q2 adjusted EPS $1.21 beat the $1.10 estimate, up 26% |
| ABM.US | +6.67% | Record $2.3 billion Q2 revenue, $1.2 billion first-half bookings |
| CLX.US | +5.03% | Clorox led a consumer-staples bid as money rotated to defensives |
| ALL.US | +4.82% | Allstate and the insurers rose against the tech decline |
| KO.US | +3.46% | Coca-Cola among the staples drawing the rotation |
| PL.US | -25.98% | A $1.5 billion equity program and margin-cut overshadow a revenue beat |
| ENPH.US | -18.01% | Solar swept into the high-beta unwind |
| MRVL.US | -16.74% | AI-chip leader fell hardest after a parabolic six-day run |
| MU.US | -13.25% | Memory fell with the chip names |
| NVDA.US | -6.20% | Even the AI bellwether dropped through the rout |
Notable earnings
- Cooper Companies COO.US reported fiscal Q2 revenue of $1.082 billion (up 8%) and non-GAAP EPS of $1.21, a 26% rise from a year earlier, and held full-year EPS guidance at $4.58 to $4.66.
- ABM Industries ABM.US posted record Q2 revenue of $2.3 billion (up 8.4%), adjusted EPS of $0.90, and record first-half new-sales bookings of $1.2 billion.
- Planet Labs PL.US fell 25.98% despite record quarterly revenue of $94.2 million (up 42%). A new $1.5 billion at-the-market equity program and a margin-guidance cut drove the steepest single-day drop in 21 months.
After-hours and next-session catalysts (ET)
- The Friday after-hours docket was quiet. The day's reporters (Cooper, ABM, Planet Labs) all landed earlier in the session.
- Mon 09:30 cash open: S&P futures sat at 7,368 and Nasdaq-100 futures at 28,829 in Friday evening trade, both extending below the cash close.
- Semiconductors stay the focus after Broadcom's guidance, with the 10-year yield at 4.54% the macro reference into next week.
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