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fortune.comJUN 66 min read$NVDABearishMed

Markets have worst day since October as tech stocks lead the way down, traders lose hope of rate cut

The S&P 500 fell 2.6% on Friday, its biggest one-day drop since Oct. 10, with the Nasdaq down 4.2% and the Dow down 1.4%. Tech led losses: Nvidia -6.2%, Broadcom -7.9%, Micron -13.3%, and Meta -5.5% after a report it may seek a new stock offering. Bond yields rose after the Labor Department said May jobs increased by 172,000, reducing expectations for a Fed rate cut.

AI DeskJune 6, 2026
Source · fortune.com
AI analysis
Actionability
Med
Sentiment · $NVDA
Bearish
Timing
today’s risk-off tape after the May jobs surprise and yield jump
Market alignment
high—strong jobs data reduces rate-cut odds, aligning with tech multiple compression
Why this matters for $NVDA

Rates repricing and AI-multiple sensitivity are pressuring NVDA alongside the broader tech drawdown.

Relevance context

Nvidia fell 6.2% as tech stocks led the selloff amid fading hopes for a Fed rate cut.

Price-impact prediction

Near-term downside bias as yields rise and rate-cut odds fall.

Background

The selloff follows a strong May jobs report that pushed Treasury yields higher and effectively eliminated market hopes for a Fed rate cut; tech’s expensive valuations made it more vulnerable.

Why it matters

Macro repricing (higher 2Y/10Y yields) is the primary driver for the broad tech complex, while META has an additional company-specific overhang from a reported potential equity offering.

Market relevance

Traders should treat this as a rates-driven risk-off day with added idiosyncratic dilution risk for META, and high-beta downside risk for AI/semis (NVDA, AVGO, MU).

Market effects

Sector

Higher yields and reduced rate-cut expectations are pressuring high-multiple tech/AI beneficiaries, amplifying semis and platform weakness.

Regional

Europe/Asia were also weaker, suggesting global risk-off transmission from the US macro surprise.

Global

Oil-price/inflation pressures (Iran/Strait of Hormuz disruption) reinforce tighter financial conditions, supporting a broader global growth scare.

Alternative perspectives

Contrarian view

If the jobs strength is temporary or inflation cools, rate-cut odds could rebound quickly, making today’s selloff potentially overdone for mega-cap tech.

Overlooked factors

The article notes many earnings were surprisingly good; if guidance remains intact, some of the move may be positioning/valuation rather than fundamental deterioration.

Key entities

  • index
    S&P 500

    Dropped 2.6% and logged its worst one-day move since October, with first losing week in 10.

  • index
    Nasdaq Composite

    Slumped 4.2% as tech led the decline.

  • company
    Meta

    Reportedly considering a new stock offering to fund AI infrastructure; shares fell 5.5%.

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