A hot labor market report and looming congressional testimony on China chip exports sent NVDA shares tumbling to $205.10.
Nvidia closed at $205.10 on June 5, shedding $13.56 per share in a single session. That 6.2% decline from the previous close of $218.66 marks one of the steepest single-day drops the chipmaker has endured this year, and it landed during a stretch of broader semiconductor weakness.
Trading volume told its own story. More than 218 million shares changed hands as two distinct catalysts collided: a macro surprise from the labor market and a political headache from Capitol Hill.
What drove the selloff
The first punch came from the US jobs report released on June 3. The numbers were stronger than economists anticipated, giving the Federal Reserve less reason to cut rates anytime soon. Nvidia, trading at lofty multiples thanks to its AI dominance, fits the profile of a stock whose valuation is built on future earnings growth and is therefore sensitive to rate expectations.
The second punch arrived courtesy of Senator Elizabeth Warren, who invited CEO Jensen Huang to testify before the Senate Banking Committee on June 11. The subject: whether Nvidia’s chip exports to China comply with US restrictions designed to prevent military applications.
Nvidia opened the session in a range between roughly $214.50 and $218 before sellers took over. By the closing bell, the stock had given up more than $13 per share. Nvidia hit a 52-week high of approximately $236.54 during May 2026. The June 5 close puts shares about 13% below that peak.
The bigger picture for Nvidia
The export compliance angle adds a layer that’s harder to model. US restrictions on advanced chip sales to China have been tightening in stages, and Nvidia has previously designed modified chips specifically to comply with existing rules while preserving some China market access. Huang’s upcoming Senate appearance will be closely watched for how aggressively lawmakers push for additional constraints.
What this means for crypto investors
Nvidia’s stock movements have historically rippled into the crypto market, particularly among AI-linked tokens. Projects like Bittensor’s TAO and NEAR Protocol have previously rallied on positive Nvidia developments, especially announcements related to agentic AI and next-generation GPU architectures. On June 5, no immediate price reaction was recorded in those AI-related tokens following Nvidia’s decline.
The macro dimension matters here too. If the strong jobs report keeps the Fed on hold for longer, that’s a headwind for risk assets across the board, crypto included. Bitcoin and altcoins have historically performed better in rate-cutting environments where liquidity is expanding.
For investors weighing their next move, the June 11 Senate hearing is the immediate event to watch. A contentious session could amplify regulatory fears and create another wave of selling pressure in both Nvidia shares and correlated crypto assets.
