Nasdaq tumbles 4% as chip stocks crash, yields surge
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- Nasdaq Composite fell 4.18% to 25,709.43, its biggest decline since early 2025.
- S&P 500 dropped 2.64% to 7,383.74, marking its first weekly loss in ten weeks.
- Broadcom's AI chip outlook disappointment triggered a sell‑off, with its shares down ~8% after a 12% plunge the day before.
- iShares Semiconductor ETF fell 10% on the day, its worst decline since March 2020.
- U.S. Treasury yields spiked after a stronger‑than‑expected May jobs report (non‑farm payrolls +172,000), pushing the 10‑year yield above 4.5% and the 30‑year above 5%.
- Consumer staples rallied, with Colgate‑Palmolive +4%, Coca‑Cola +3%, and Procter & Gamble +5%, as investors rotated into safety.
- Bitcoin fell below $60,000 for the first time since late 2024.
Why it matters: Chip makers and AI‑related stocks bore the brunt, losing double‑digit percentages, while investors shifted into consumer staples and cash, boosting those sectors. The yield spike raises borrowing costs for AI‑intensive firms and hints at tighter monetary policy, affecting corporate financing and growth prospects.
