US Open 5 June 2026: Chip Selloff and a 172K Jobs Beat Drive a Rotation Out of Tech

Sentiment: mixed S&P 500: 7,528.59 (-0.73%) | Nasdaq: 26,503.65 (-1.22%) | Russell 2000: 2,935.33 (+1.45%)

The S&P 500 opened at 7,528.59 on 5 June 2026, down 0.73%, as a Broadcom-led semiconductor selloff collided with a hotter-than-expected May jobs report that lifted the 10-year Treasury yield 5 basis points to 4.53%. Semiconductors did the damage, with the chip sector down 4.5% at the open and the Nasdaq off 1.22%, while the Dow held near flat at -0.18%. Small-caps (Russell 2000 +1.45%) and defensive sectors are absorbing the money leaving high-multiple AI names, which is why the indices split rather than fall together.

What drove the move

• May payrolls +172,000 against +80,000 expected. The print more than doubled the Dow Jones consensus, unemployment held at 4.3%, and the BLS revised March and April up a combined 93,000. Average hourly earnings rose 0.3% on the month and 3.4% over the year, both in line. The 10-year yield jumped 5 basis points to 4.53%, its highest since 21 May, and the 2-year added 7 basis points to 4.12%.
• Rate-cut bets unwound. Traders pushed fed funds futures toward tightening after the report, now pricing better-than-even odds of a rate hike by the October meeting and treating one as near-certain by December. Higher rates weigh most on long-duration tech, where valuations lean hardest on the discount rate.
• Broadcom triggered the AI reset. AVGO.US guided fiscal Q3 AI-chip revenue to $16.0 billion, under the $17.2 billion the Street modeled, and CEO Hock Tan declined to lift the full-year $100 billion AI target despite Q2 AI revenue of $10.8 billion, up 143% year over year. The stock fell about 14% on Thursday and is down another 4.18% early, and the whole chip group fell with it.

Overnight Asia and Europe

• KOSPI -5.54% led Asia lower, a direct hit from the chip selloff given Korea's memory-chip weighting. Japan's Nikkei 225 fell 1.31% to 66,588 off its recent record, Hong Kong's Hang Seng lost 1.15%, and the Shanghai Composite slipped 0.74%.
• Europe is steadier mid-session: the FTSE 100 is up 0.36% to 10,397 and the CAC 40 up 0.23%, while the DAX is off 0.13% and the STOXX 600 flat at 624.8. The regional split mirrors Wall Street, with chip-heavy benchmarks lagging.

Pre-market and early movers

• ARM.US -8.11% and MRVL.US -6.58% are the sharpest chip declines, with SMCI.US -6.62%, INTC.US -5.61%, MU.US -5.19% and AMD.US -5.03% close behind. AVGO.US -4.18%, QCOM.US -4.53% and TSM.US -3.66% extend the selloff; NVDA.US -2.26% is the relative outperformer of the group.
• AAPL.US +0.95% and AMZN.US +0.73% are the megacaps bucking the weakness, both lighter on AI-capex spend than the chipmakers.
• Defensives led the upside: consumer staples +1.6% and health care +1.4% topped all sectors, with consumer discretionary +0.6% and utilities +0.4% also higher. Energy lagged at -1.0% as WTI crude fell 1.6% to $91.55.
• Large-cap financials and industrials gave ground despite the strong-economy read: GS.US -1.82%, C.US -1.52% and CAT.US -2.94%. The bid was down-cap rather than cyclical.

US economic calendar today (ET)

• 8:30am: May employment report, released: +172,000 payrolls, 4.3% unemployment, +0.3% monthly wages.
• 1:00pm: Baker Hughes US rig count.
• Fedspeak: any official reaction to the payrolls beat could move the front end of the curve further.

What to watch

• Breadth is the story: the Nasdaq is down 1.22% while the Russell 2000 is up 1.45%, a 2.7-point spread that frames the session.
• The 10-year yield at 4.53% is the pressure gauge for long-duration tech; another leg higher would extend the semiconductor derate.
• VIX +3.6% to 15.95 points to firmer hedging demand, though a sub-16 reading keeps it consistent with a single-sector unwind rather than a market-wide risk event.

Context only. Not financial advice. Track your own trades with Swingfolio.