Stock Market Today: Nasdaq Sinks 4% On Rate-Hike Worries; Nvidia Falls Amid Chip Sell-Off (Live Coverage)

Why It Matters

The sell‑off highlights how quickly equity markets react to Fed policy signals and geopolitical risk, especially in high‑growth tech and semiconductor names, reshaping sector allocation and risk appetite.

Key Takeaways

• Nasdaq dropped 4%, worst day since April 2025.
• 10‑year Treasury yield rose to 4.54% after jobs data.
• Nvidia fell >5% over potential Blackwell export loophole.
• Consumer staples rose 2.5% as investors sought safety.
• Docusign shares slid 7% on cautious Q2 revenue outlook.

Pulse Analysis

The May jobs report added 172,000 positions, far outpacing the 85,000 consensus, while unemployment held at 4.3%. The surprise strength pushed the 10‑year Treasury yield up seven basis points to 4.54%, reviving expectations that the Federal Reserve may keep tightening through 2026. Higher yields immediately compressed equity valuations, sending the Nasdaq composite down 4%—its steepest decline since April 2025—and dragging the S&P 500 lower by 2.3%. The sell‑off underscored how quickly market sentiment can pivot when inflation‑linked policy cues shift.

Technology and semiconductor names bore the brunt of the pull‑back. Nvidia, the AI‑chip bellwether, slipped more than 5% after Bloomberg flagged a possible loophole that could allow its Blackwell processors to reach Chinese customers outside of China, raising geopolitical risk concerns. Arm and Marvell each tumbled over 10%, and the VanEck Semiconductor ETF lost more than 8%, highlighting the sector’s vulnerability to both policy uncertainty and rising financing costs. Investors appear to be re‑pricing the near‑term earnings runway for AI‑driven hardware as the cost of capital climbs.

Defensive sectors provided a modest cushion, with consumer staples up 2.5% and utilities, real estate, and healthcare also posting gains as risk‑averse capital migrated to safety. Earnings mixed the narrative: Docusign warned of a cautious Q2 revenue outlook, sending its stock down 7%, while Argan posted a 50% revenue jump to $291 million, lifting its shares more than 10%. Lululemon’s 11% pre‑market plunge after cutting full‑year guidance reminded investors that even strong brands can be derailed by soft product reception. The market’s next inflection point will likely hinge on the June 17 Fed meeting and whether yields stabilize.