Nvidia, AMD and Broadcom Lead Tech Sell-Off on Rate Fears

Daniel David June 5, 2026 3 minutes read

Stocks sink after jobs report raises rate hike fears

The Nasdaq fell over 3% today as AI and chip stocks bore the heaviest losses

A stronger-than-expected jobs report sent major stock indexes sharply lower today, June 5, as investors raised their bets that the Federal Reserve will hike interest rates before the end of the year. Technology and artificial intelligence stocks took the hardest hit.

The jobs report changed the math for investors

The Labor Department reported that employers added 172,000 jobs in May, more than double the 80,000 economists had forecast. The unemployment rate held steady at 4.3%. While strong jobs data would normally signal economic health, markets read it as a sign that the Fed has less reason to cut rates and more reason to raise them.

Traders now put the odds of a rate hike by the end of 2026 at nearly 70%, up from just under 50% before the report came out. Higher interest rates make borrowing more expensive for companies, particularly those in the AI space that are spending heavily on data centers and infrastructure.

AI and chip stocks led the losses

The Nasdaq Composite fell roughly 3% in afternoon trading, on pace for its worst weekly decline in more than a year. The Nasdaq 100, which tracks the largest non-financial tech stocks, dropped more than 3% as well.

Nvidia, the world’s largest publicly traded company, slid about 5%. AMD and Micron Technology each fell around 9%. Broadcom dropped 6%, extending losses from earlier in the week after a weak earnings report pushed it down more than 13% for the week. Oracle lost 9% and IBM dropped 7%.

Chipmakers Arm, Marvell, Qualcomm and Intel also fell more than 8%. Caterpillar, which supplies construction equipment used in building AI data centers, dropped close to 3%.

Bond yields jumped in response

The 10-year Treasury yield climbed past 4.5% after the jobs report, while the 2-year yield, which tends to track Fed rate expectations more closely, rose to 4.15%. Both moves reflect growing concern that rates will stay higher for longer than markets had hoped.

Broader indexes still above their yearly gains

The S&P 500 fell 1.8% today, ending what would have been its tenth straight week of gains. The Dow Jones Industrial Average slipped roughly 450 points, though it held up better than other indexes. Despite today’s losses, the S&P 500 and Nasdaq both remain up around 10% for the year.

White House National Economic Council director Kevin Hassett pushed back on the market reaction, saying investors were wrong to interpret the jobs report as a signal for higher inflation. He pointed to ongoing energy pressures tied to the conflict with Iran and argued that strong supply-side growth can support the economy without driving prices higher.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. The author and publication are not registered investment advisors and do not provide personalized investment recommendations.