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S&P, Nasdaq fall as tech shares drag markets lower and Bitcoin follows suit
A hotter-than-expected jobs report and weak Broadcom guidance triggered the Nasdaq's worst single-day drop since April 2025, with crypto markets feeling the pain.
The Nasdaq Composite cratered 4.18% on June 5, its steepest single-session decline since April 2025, as a one-two punch of strong labor data and disappointing semiconductor guidance sent investors running for the exits.
The S&P 500 shed 2.64% while the Dow Jones Industrial Average dropped 1.35%. For the S&P, it marked the end of a nine-week winning streak and the index’s worst one-day performance since October 2025.
What triggered the sell-off
Two catalysts collided. First, the May jobs report came in significantly stronger than economists anticipated. A hot jobs number raises the probability that the Fed keeps rates elevated, or even hikes them further. Higher rates make future earnings worth less in today’s dollars, and no sector gets punished harder by that math than tech, where valuations are built on growth projections years into the future.
The second catalyst was Broadcom. The chipmaker issued forward guidance that disappointed Wall Street. Broadcom shares fell 7.9%, but the damage radiated outward across the entire semiconductor complex. Nvidia dropped 6.2%. Micron fared even worse, plummeting 13.3% in a single session.
Crypto caught in the downdraft
On June 5, Bitcoin extended its losses to settle around $61,344, representing a 3.17% decline.
Coinbase, Robinhood, and MicroStrategy each dropped more than 6% during the session. These stocks sit at the intersection of tech growth narratives and crypto exposure, which means they got hit from both directions.
The macro picture underneath
Pressure on tech shares continued into June 9 as markets braced for upcoming inflation data and other economic indicators.
What this means for investors
Bitcoin at $61,344 puts it well below recent highs, and the 3.17% decline on a single day driven entirely by traditional finance dynamics, not by any crypto-specific catalyst, illustrates how tightly digital assets remain tethered to broader market sentiment.
Coinbase and Robinhood derive revenue from trading volumes, which tend to dry up during risk-off periods. MicroStrategy’s balance sheet is directly tied to Bitcoin’s price. All three stocks falling more than 6% suggests the market is pricing in more than just a one-day blip.