Good news for the economy just delivered a gut punch to your portfolio. The S&P 500 plunged 2.64% after May’s nonfarm payrolls report showed employers added 172,000 jobs, more than double the roughly 80,000 that economists had penciled in.

The drop marked the index’s worst single-day performance of the year and snapped a nine-week winning streak. For the week, the S&P 500 shed 2.5%. The Nasdaq Composite fared even worse, tumbling 4.18% in its ugliest session since April 2025.

The jobs report that broke the rally

The May employment report landed with 172,000 new jobs while the unemployment rate held steady at 4.3%. The bond market reacted accordingly. The 10-year Treasury yield surged to near 4.5% during intraday trading, reflecting rapidly diminishing odds that the Fed will deliver rate cuts this year.

Crypto caught in the crossfire

Bitcoin had already been under significant pressure before the jobs report landed. The token has lost more than 20% in value over the past week alone and sits more than 50% below its October 2025 peak. The broader crypto market has shed roughly $2.5 trillion in total value since that high-water mark.

What this means for investors

For crypto holders, Bitcoin sitting more than 50% off its peak with Treasury yields near 4.5% creates a challenging environment for new capital inflows. Traders should watch the 10-year yield as the single most important signal. If it breaks convincingly above 4.5% and stays there, expect continued pressure on both equities and crypto.