U.S. Stock Market Update
On June 4, 2026, U.S. stocks experienced a decline, impacted by significant drops in leading semiconductor companies and rising U.S. Treasury yields. This shift followed a surprisingly strong jobs report for May.
The Nasdaq Composite fell over 3%, marking its largest drop since April 2025. The S&P 500 dropped more than 2%, while the Dow Jones Industrial Average decreased by 491 points, roughly 1%.
Specifically, Broadcom shares slid over 6% after a prior drop of over 12% the day before. Marvel Technology and Micron Technology saw declines of 12% and 11%, respectively. Intel’s stock fell by more than 9%, while Advanced Micro Devices decreased by 10%.
Anshul Sharma, chief investment officer at Savvy Wealth, reflected on the situation: “It’s a bit of profit taking. The AI story is still intact, but I think their expectations are higher than they thought. Even relatively good news can end in disappointment if expectations aren’t as elevated as they’ve been.”
The decline coincided with a report from the Bureau of Labor Statistics revealing that nonfarm payrolls rose by 172,000 jobs in May, which significantly surpassed the anticipated increase of 80,000 by Dow Jones economists. The unemployment rate remained stable at 4.3%, meeting expectations.
This employment data contributed to rising U.S. Treasury yields, elevating expectations that the Federal Reserve might increase interest rates later this year. The yield for 10-year bonds exceeded 4.5%, and for 30-year bonds, it exceeded 5%.
Sharma noted, “The Fed’s job is going to be a little bit harder in terms of the path forward. The employment data for March and April have also been revised upwards, reinforcing the idea that the labor market is stronger than the headlines suggest.”
On a brighter note, consumer staples rose by 2%, with companies like Colgate-Palmolive and Coca-Cola increasing by more than 3% as the market continues to shift away from tech stocks.
This week marked the first negative week for the S&P 500 in a decade, with a decline of more than 2%. The Dow 30 is expected to finish the week up by less than 1%, while the Nasdaq Composite anticipates a decline of about 4%.
