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[ARTICLE · art-22922] src=sherwood.news pub= topic=artificial-intelligence verified=true sentiment=↓ negative

Stocks tumble amid AI sell-off as a blowout jobs report dampens hope of a rate cut this year

The S&P 500 snapped a nine-week winning streak and the Nasdaq 100 suffered its worst day since April 2025 after a stronger-than-expected May jobs report sent yields spiking and slashed the implied odds of a Federal Reserve rate cut this year. Technology stocks led the sell-off as investors rotated into defensive sectors, with momentum names like Micron, Marvell Technology, and AMD falling sharply amid a broad profit-taking wave. The rout deepened as Meta dropped on reports it may raise tens of billions for AI spending, following Alphabet's $85 billion stock offering, while Coinbase and Strategy declined alongside a crypto market slide.

read2 min publishedJun 5, 2026

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, andAMDallfalling sharply.Quantum computing stocks

D-Wave Quantum,Rigetti Computing,Quantinuum, andInfleqtiontumbled as part of the broader momentum unwind.AI infrastructure names

CoreWeaveandNebiusdropped as investors sold high-flying tech across the board.Metadropped on a Financial Times report it is consideringraising tens of billions of dollars in equity to fund its AI build-outafterAlphabet’s$85 billion stock offering, with both stocks falling.Coinbasefell amid a broad crypto market decline and abearish note from Baird lowering its price target to $142 from $160.Strategydropped asbitcoinfell below $60,000. Digital asset treasuries haveshed $62 billion in market cap since October.Robloxfell after Wedbush said engagement is weakening and concurrent user growth has slowed every month since its August peak.Lululemonshares sank after the companycut its full-year sales and profit outlook, overshadowing a Q1 beat and raising fresh concerns about the brand’s turnaround efforts.Warner Bros. DiscoveryandParamount Skydancefell after Reuters reported a group of states isprepping a lawsuit to blocktheir merger.Zcashnosedived after acounterfeit vulnerability was revealed.Broadcomcontinued to fall for another day followingearnings results that dragged down the whole AI complex.

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