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Wall Street just had its worst day in months, and you can thank a jobs report that was, paradoxically, too good.
The S&P 500 closed down 2.6% on June 5, erasing roughly $1.8 trillion in market value in a single session. The tech-heavy NASDAQ 100 fared even worse, dropping 4.8% in what amounted to its steepest single-day decline since April 2025. Bitcoin, increasingly correlated with risk assets, fell approximately 4.3% to close near $60,850.
A jobs report nobody wanted
The Bureau of Labor Statistics reported that the US economy added 172,000 nonfarm payrolls in May. Consensus estimates had called for somewhere between 80,000 and 88,000 new jobs. The unemployment rate held at 4.3%.
The selloff was broad, but it hit hardest where valuations were most stretched. Semiconductor stocks bore the brunt. Nvidia shares plummeted 6.2%, while Broadcom posted a notable revenue miss that compounded the sector’s pain.
The end of the easy money rally
This correction marked the end of a multi-week rally that had been fueled by two things: euphoria around artificial intelligence and widespread bets that monetary easing was right around the corner. Both pillars cracked on the same day. The jobs data undercut the rate-cut thesis, while Broadcom’s revenue miss raised questions about whether AI spending is translating into actual earnings growth across the semiconductor supply chain.
What this means for crypto investors
Bitcoin’s 4.3% decline to roughly $60,850 reinforced its correlation with tech stocks. When risk-off sentiment took hold on Wall Street, crypto followed by a comparable magnitude, behaving less like digital gold and more like a leveraged tech ETF.
Markets had grown complacent, pricing in a goldilocks scenario where AI would drive earnings growth while the Fed simultaneously loosened monetary policy. A 172,000-job print blew up the weak-economy half of that equation.
The April 2025 NASDAQ drop, the last time tech fell this hard in a single session, was followed by a recovery within weeks.
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