Story
Tech Slump Deepens
June 5, 2026
Equities fell sharply as a stronger-than-expected monthly jobs report fueled expectations of a more hawkish monetary policy stance. Investors were greeted by a nonfarm payrolls report showing the US economy added 172K jobs in May, well above economists' forecast of 88K. Technology stocks crumbled with the NASDAQ posting its largest one-day decline since the onset of the 2025 Liberation Day tariff selloff. The S&P 500 also snapped its streak of nine consecutive weeks of gains as the rotation into more defensive assets broadened. The DJIA was lower by 695.15 points (-1.35%), closing at 50866.78. The S&P 500 fell by 200.57 points (-2.64%) and settled at 7383.74 while the NASDAQ collapsed by 1121.53 points (-4.18%), closing at 25709.43.
Breadth was negative with declining issues beating advancing issues by 5:2 on the NYSE and by 3:1 on the NASDAQ. The declining volume was 75% on the NYSE and 66% on the NASDAQ. VIX was higher by 6.11 points (39.5%) and settled at 21.51. Crude oil finished lower by $2.68 (-2.88%), as the July contract closed at $90.36 a barrel. Gold prices sank by 161.70 points (-3.59%) and settled at $4343.30 an ounce. Bitcoin (BTC) closed the session at $61,209.80.
The jobs data arrives ahead of new Fed Chair Kevin Warsh's first policy meeting later this month, as he begins assessing an economy grappling with elevated inflationary pressures, exacerbated by conflict in the Middle East. It is important to remember that one bad trading session does not make a trend, especially considering that the market's parabolic advance was overdue for a period of consolidation after reaching overbought conditions. Looking ahead, investors will turn their attention to key inflation reports, set against the backdrop of what is being billed as the largest IPO in history; SpaceX's anticipated market debut.
Earnings releases to watch on Monday include: Trip.com (TCOM).
Monday's Market Moving Economic Calendar include: N/A
For a complete review of the week and a detailed technical outlook make sure you check out the weekly Market Letter.
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By Rachel Paule