Daily Market Report – June 5, 2026
The record hunt on Wall Street came to an abrupt end on Friday. The S&P 500 (TVC:SPX – https://www.tradingview.com/symbols/TVC-SPX/) lost 2.6%, the Nasdaq Composite (NASDAQ:IXIC – https://www.tradingview.com/symbols/NASDAQ-IXIC/) 4.2%, and the Dow Jones Industrial Average (DJI – https://www.tradingview.com/symbols/DJI-DJI/) 1.4%. The trigger was a significantly stronger than expected US labor market report, which dampened hopes for imminent interest rate cuts by the Federal Reserve. At the same time, a sharp sell-off in semiconductor stocks weighed heavily.
The yield on ten-year US government bonds rose to 4.54%. The US dollar gained value against most major currencies. Gold (TVC:GOLD – https://www.tradingview.com/symbols/TVC-GOLD/) lost 3.6%, while Brent crude oil (TVC:UKOIL – https://www.tradingview.com/symbols/TVC-UKOIL/) was able to gain despite a weak trading day on a weekly basis.
Companies & Reporting Season
The focus was on the semiconductor and AI stocks. The Philadelphia Semiconductor Index lost more than 10% and recorded the strongest daily loss since 2020. In just the past two trading days, approximately $1.3 trillion in market value was wiped out.
Particularly strong were:
* NVIDIA (NASDAQ:NVDA – https://www.tradingview.com/symbols/NASDAQ-NVDA/ ) * Advanced Micro Devices (NASDAQ:AMD – https://www.tradingview.com/symbols/NASDAQ-AMD/ ) * Micron Technology (NASDAQ:MU – https://www.tradingview.com/symbols/NASDAQ-MU/ ) * Marvell Technology (NASDAQ:MRVL – https://www.tradingview.com/symbols/NASDAQ-MRVL/ ) * Qualcomm (NASDAQ:QCOM – https://www.tradingview.com/symbols/NASDAQ-QCOM/ ) * Arm Holdings (NASDAQ:ARM – https://www.tradingview.com/symbols/NASDAQ-ARM/ )
The trigger was provided by Broadcom (NASDAQ:AVGO – https://www.tradingview.com/symbols/NASDAQ-AVGO/). The company published a more cautious outlook for its AI chip business. This heightened concerns that the extremely high expectations for the AI investment wave may have run too far in the short term.
Macroeconomics
The decisive impulse came from the American labor market report of the U.S. Bureau of Labor Statistics. The U.S. economy created 172,000 new jobs in May. Economists had only expected around 80,000 to 85,000. The unemployment rate remained at 4.3%. In addition, the employment figures for the previous months were revised upward.
Also noteworthy was the increase in job openings in the latest JOLTS report from the Bureau of Labor Statistics to 7.6 million. The demand for labor remains robust despite high interest rates.
This is bad news for the capital markets: A stronger labor market increases the likelihood that the Federal Reserve will keep interest rates higher for longer or even raise them again. The futures markets are now pricing in a significant probability of an interest rate hike by the end of the year. Particularly interest-sensitive growth and AI stocks reacted to this with significant price losses.