NASDAQ Sinks 4% After Hot May Jobs Report Pushes Yields Higher, Hits Tech and Crypto

A stronger-than-expected May jobs report sparked a broad risk-off move on Wall Street, as investors reassessed the outlook for U.S. interest rates. The economy added 172,000 jobs in May, nearly double the market consensus of roughly 80,000 to 85,000. The unemployment rate was unchanged at 4.3%. While the numbers point to labor-market resilience, markets treated the data as a warning sign for monetary policy: solid hiring reduces the Federal Reserve's urgency to cut rates and can even revive fears of further tightening. Treasury yields jumped on the release, with the 10-year yield pushing above 4.5%. Higher yields weighed heavily on long-duration growth stocks, where valuations depend more on future earnings discounted back to today. On June 5, 2026, the NASDAQ Composite tumbled 4.2%, its worst single-day drop since April 2025. Nvidia fell about 6% on the session, and Broadcom was also among the notable decliners. The S&P 500 recorded its first weekly drop in nine weeks, ending one of the year's steadier winning streaks. Crypto followed equities lower. Bitcoin briefly slipped below $60,000 during June 5 intraday trading before rebounding above $61,000, a move of roughly $1,000 in a matter of hours. The swing appeared driven less by crypto-specific news than by the same macro forces hitting tech shares. The persistent correlation between Bitcoin and the NASDAQ remained in focus: when yields spike and growth stocks sell off, Bitcoin often tracks the move, behaving more like a high-beta risk asset than a defensive hedge. For investors, the report forced a rapid reset in rate expectations. Prior to the data, markets had been leaning toward a relatively dovish Fed trajectory for the second half of 2026; that view is now being repriced. With the 10-year yield above 4.5%, financing costs are rising across the economy, from companies funding capital-intensive AI infrastructure to homebuyers and leveraged crypto traders. Market participants are also watching Nvidia's outsized decline. A roughly 6% one-day drop was steeper than the broader benchmarks, a reminder that semiconductor and AI names have been among the market's most crowded momentum trades and can reverse sharply when sentiment shifts. In crypto, the quick bounce back above $61,000 suggests dip buyers remain active, but the initial downdraft came with meaningful selling pressure.