Stocks tumble amid AI sell-off as a blowout jobs report dampens hope of a rate cut this year
The S&P 500 broke its streak of nine consecutive weekly gains, while the Nasdaq 100 had its worst day since April 2025.
Stocks fell sharply as tech and momentum stocks sold off hard. A blowout May jobs report sent yields spiking and slashed the implied odds of a rate cut this year. The Nasdaq 100 had its biggest daily decline since April 2025. The S&P 500 broke its nine-week winning streak, while the Russell 2000 fell as well. All three indexes posted a weekly loss.
Technology was the worst-performing sector by a wide margin, with Technology Select Sector SPDR tumbling as investors rotated into defensive sectors. Consumer staples, utilities, and healthcare all rose, along with real estate.
Stocks that moved lower:
Momentum stocks fell as investors took profits in recent winners, with Micron, Marvell Technology, Sandisk, Western Digital, and AMD all falling sharply.
Quantum computing stocks D-Wave Quantum, Rigetti Computing, Quantinuum, and Infleqtion tumbled as part of the broader momentum unwind.
AI infrastructure names CoreWeave and Nebius dropped as investors sold high-flying tech across the board.
Meta dropped on a Financial Times report it is considering raising tens of billions of dollars in equity to fund its AI build-out after Alphabet’s $85 billion stock offering, with both stocks falling.
Coinbase fell amid a broad crypto market decline and a bearish note from Baird lowering its price target to $142 from $160.
Strategy dropped as bitcoin fell below $60,000. Digital asset treasuries have shed $62 billion in market cap since October.
Roblox fell after Wedbush said engagement is weakening and concurrent user growth has slowed every month since its August peak.
Lululemon shares sank after the company cut its full-year sales and profit outlook, overshadowing a Q1 beat and raising fresh concerns about the brand’s turnaround efforts.
Warner Bros. Discovery and Paramount Skydance fell after Reuters reported a group of states is prepping a lawsuit to block their merger.
Zcash nosedived after a counterfeit vulnerability was revealed.
Broadcom continued to fall for another day following earnings results that dragged down the whole AI complex.
