Nasdaq Plummets Over 4% as Semiconductor Rout and Strong Jobs Data Spook Markets

Amid escalating concerns over persistent inflation, U.S. equity markets experienced a significant selloff that drove the Nasdaq Composite down by more than 4%, marking its sharpest one-day decline since early 2025. The Dow Jones Industrial Average lost approximately 685 points just a day after hitting a record high, while the S&P 500 snapped a nine-week winning streak. This downturn was primarily triggered by stronger-than-expected employment data, which sparked fears that the Federal Reserve might maintain a hawkish monetary stance for longer than anticipated.

Market sentiment was severely impacted by a broad rout in semiconductor stocks, with industry leaders like Nvidia and AMD leading the tech sector lower. According to market data, this decline coincided with selling pressure across high-beta assets, while analyst reports highlighted that the U.S. ISM Manufacturing PMI reached 54 on June 1, 2026, exceeding the forecast of 53. This robust economic activity further supports the narrative that the Fed may delay interest rate cuts to prevent overheating.

Traders are now closely watching key technical support levels following this breakdown, with the Nasdaq finishing at depressed levels as of the close on June 5, 2026. Looking ahead to the economic calendar, markets are awaiting upcoming catalysts including Fed Chair Powell's recent commentary and the ISM Manufacturing Employment figures which printed at 48.6 on June 1, 2026. The focus remains on whether the technology sector can stabilize before the next round of central bank policy meetings.