Hot jobs data and a Broadcom chip rout sink Wall Street: S&P 500 ends the week down 2.6%
S&P 500 week close: 7,383.74 (-2.59% on the week) Nasdaq Friday close: 25,709.43 (-4.18% Friday, -4.68% on the week) Sentiment: bearish
A quiet week turned ugly on Friday. A much hotter than expected May jobs report collided with a revenue miss from Broadcom, and together they handed the Nasdaq its worst single session in more than a year. The S&P 500 finished the week at 7,383.74, down 2.59%, with almost the entire decline landing in Friday's 2.64% drop. The Nasdaq fell 4.68% on the week, the Dow held up at 0.32% lower, and the VIX volatility gauge jumped 40% to 21.51 as traders reached for protection.
The week on Wall Street
Stocks held steady for four sessions. Then the May employment report printed 172,000 new jobs against forecasts near 80,000, with unemployment steady at 4.3%. A labor market that strong told investors the Federal Reserve has little reason to cut rates soon, and the repricing was fast: the 10-year Treasury yield rose to 4.54% from 4.45% a week earlier, the 30-year cleared 5%, and the dollar index firmed to 100.07.
Higher rates hit the priciest corners of the market, and Broadcom deepened the damage. The chipmaker reported quarterly revenue below expectations and fell about 12%, dragging Intel and Micron down roughly 6% and 7%, and the chip slide alone erased close to a trillion dollars of value. The gap between the Nasdaq's 4.68% weekly loss and the Dow's 0.32% loss shows where investors went: out of high-multiple growth and into defensive large-caps.
Sector scorecard (5-day)
- Laggard, technology and semiconductors: Broadcom's miss set off a chip rout that pulled the Nasdaq down 4.68% for the week.
- Laggard, speculative growth: space, quantum, and crypto-treasury names fell 20% to 37% (see top movers below).
- Leader, healthcare: Humana (HUM.US), Medtronic (MDT.US), Glaukos (GKOS.US), Legend Biotech (LEGN.US), and Oscar Health (OSCR.US) all posted double-digit weekly gains.
- Dispersion, Nasdaq minus Dow: about 4.4 percentage points, the widest defensive-versus-growth split in months.
Top movers: week ending June 5
| Ticker | Week | Reason |
|---|---|---|
| MRVL.US | +28.5% | Nvidia's CEO called Marvell a future trillion-dollar firm; record one-day jump |
| TCNNF.US | +26.4% | Cleared to uplist to the NYSE on June 10 as the first major-exchange US cannabis name |
| TMHC.US | +22.3% | Berkshire Hathaway agreed to buy the homebuilder for $6.8 billion at $72.50 a share |
| FLNC.US | +21.4% | Unveiled a Siemens and Nvidia data-center power tie-up and large hyperscaler orders |
| GKOS.US | +21.0% | Launched Epioxa, the first FDA-approved topical therapy for keratoconus |
| PL.US | -37.0% | Solid quarter overshadowed by a $1.5 billion stock sale; dilution fear plus space selling |
| CELC.US | -33.6% | Phase 3 cancer trial cut progression risk by half but reported patient deaths |
| LUNR.US | -33.0% | Space names fell after Blue Origin's New Glenn exploded on a Cape Canaveral test stand |
| CRCL.US | -29.0% | Report that Visa, Mastercard, and Stripe are building a rival stablecoin platform |
| RDW.US | -24.9% | Space-infrastructure name swept into the post-explosion sector decline |
Friday's session: the jobs shock
The jobs report was the trigger. Payrolls running at more than double the forecast pushed rate-cut bets out of the market and lifted yields across the curve. Investors value growth stocks on cash flows far in the future, so those stocks fall the most when long-term rates rise. The Nasdaq's 4.18% Friday drop showed it. Broadcom's revenue miss arriving the same morning turned a rate scare into a sector rout. By the close the S&P 500 was down 2.64% on the day, the Dow had shed about 695 points (1.35%), and the VIX had spiked nearly 40% in a single session, a sign that the calm of the prior four days had masked a crowded, one-sided market.
Macro themes that played out
The dominant theme was a repricing of Fed expectations. Before Friday, the market leaned toward rate cuts later in 2026; a 172,000 payroll print with 4.3% unemployment pushed that view back, and bond yields confirmed it.
The second theme was the breaking of the year's hottest speculative trades, and three separate stories landed in the same week. Space stocks fell after Blue Origin's New Glenn rocket exploded during a May 28 engine test at Cape Canaveral, the largest blast in the range's history, hitting Planet Labs (PL.US), Intuitive Machines (LUNR.US), Redwire (RDW.US), and Rocket Lab (RKLB.US). Quantum names slid as Quantinuum priced a $1.68 billion Nasdaq IPO on June 4, drawing money out of incumbents such as IonQ (IONQ.US). And crypto-linked stocks weakened as a report suggested Visa, Mastercard, and Stripe would launch a competing stablecoin, pressuring Circle (CRCL.US), while Strategy (MSTR.US) fell after disclosing its first bitcoin sale in years. Each story was distinct, but the selling clustered in the same richly valued, story-driven names.
Against that backdrop, deal news and AI-infrastructure demand kept a handful of names green. Berkshire's bid for Taylor Morrison (TMHC.US), Marvell's (MRVL.US) AI endorsement, and Fluence's (FLNC.US) data-center power deals all pushed higher while the broad market fell.
Week ahead: Mon to Fri (ET)
The Fed is in its pre-meeting blackout ahead of the June 16-17 decision, so this week turns on data and a pair of AI earnings tests.
- Mon June 8: Quiet open as markets digest Friday's jobs shock, with no major US data due.
- Tue June 9: Light calendar before Wednesday's inflation print.
- Wed June 10: May CPI at 8:30am ET, the week's main event after the hot jobs number. Oracle (ORCL.US) reports fiscal Q4 after the close.
- Thu June 11: May PPI and weekly jobless claims at 8:30am ET. Adobe (ADBE.US) reports after the close, a read on AI-driven software demand.
- Fri June 12: No major US data; a quiet finish ahead of the June 16-17 Fed meeting.
CPI is the print that matters most. After Friday's jobs shock, a hot inflation number would harden the case for the Fed staying on hold and could extend the pressure on rate-sensitive growth stocks; a softer number would offer the first relief.
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