S&P Plunges 2.6%, Market Reprices Interest Rate Hike
Wall Street's weekly rally stalled on Friday (June 5th) after a sharp sell-off in technology stocks and a rise in bond yields, following solid US jobs data. The market viewed the jobs report as strengthening the likelihood of the Fed's next rate hike, reinforcing expectations of "higher for longer" interest rates.
The greatest pressure came from AI and semiconductor stocks, which had led the rally since late March. Valuation concerns pushed the S&P 500 down more than 2.5%, failing to record a 10-week winning streak, while the Nasdaq 100 plunged about 5%—its deepest decline since April 2025. The chip index fell about 10%, with MetaTrader 5 also under pressure after reports that companies were considering major stock sales.
The sell-off also spread to bonds and crypto. The 2-year Treasury yield surged, the dollar strengthened, and Bitcoin fell toward the US$60,000 area. Looking ahead, the market will be monitoring how the Fed interprets the combination of strong employment data and inflation risks, ahead of its June 16–17 policy meeting under new Chairman Kevin Warsh. (Arl)
Source: Newsmaker.id
