{"slug": "stocks-tumble-amid-ai-sell-off-as-a-blowout-jobs-report-dampens-hope-of-a-rate", "title": "Stocks tumble amid AI sell-off as a blowout jobs report dampens hope of a rate cut this year", "summary": "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.", "body_md": "# Stocks tumble amid AI sell-off as a blowout jobs report dampens hope of a rate cut this year\n\nThe S&P 500 broke its streak of nine consecutive weekly gains, while the Nasdaq 100 had its worst day since April 2025.\n\nStocks fell sharply as [tech and momentum stocks sold off hard](https://sherwood.news/markets/tech-stocks-tumble-as-momentum-stocks-run-into-a-blowout-jobs-report-and-a-wave-of-profit-taking/). A [blowout May jobs report](https://sherwood.news/markets/us-job-growth-skyrocketed-in-may-blasting-past-expectations/) 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.\n\nTechnology was the worst-performing sector by a wide margin, with [Technology Select Sector SPDR](https://robinhood.com/us/en/stocks/XLK/?source=sherwood) tumbling as investors rotated into defensive sectors. Consumer staples, utilities, and healthcare all rose, along with real estate.\n\n**Stocks that moved lower:**\n\nMomentum stocks fell as investors took profits in recent winners, with\n\n[Micron](https://robinhood.com/us/en/stocks/MU/?source=sherwood),[Marvell Technology](https://robinhood.com/us/en/stocks/MRVL/?source=sherwood),[Sandisk](https://robinhood.com/us/en/stocks/SNDK/?source=sherwood),[Western Digital](https://robinhood.com/us/en/stocks/WDC/?source=sherwood), and[AMD](https://robinhood.com/us/en/stocks/AMD/?source=sherwood)all[falling sharply](https://sherwood.news/markets/tech-stocks-tumble-as-momentum-stocks-run-into-a-blowout-jobs-report-and-a-wave-of-profit-taking/).Quantum computing stocks\n\n[D-Wave Quantum](https://robinhood.com/us/en/stocks/QBTS/?source=sherwood),[Rigetti Computing](https://robinhood.com/us/en/stocks/RGTI/?source=sherwood),[Quantinuum](https://robinhood.com/us/en/stocks/QNT/?source=sherwood), and[Infleqtion](https://robinhood.com/us/en/stocks/INFQ/?source=sherwood)[tumbled as part of the broader momentum unwind](https://sherwood.news/markets/tech-stocks-tumble-as-momentum-stocks-run-into-a-blowout-jobs-report-and-a-wave-of-profit-taking/).AI infrastructure names\n\n[CoreWeave](https://robinhood.com/us/en/stocks/CRWV/?source=sherwood)and[Nebius](https://robinhood.com/us/en/stocks/NBIS/?source=sherwood)[dropped as investors sold high-flying tech across the board](https://sherwood.news/markets/tech-stocks-tumble-as-momentum-stocks-run-into-a-blowout-jobs-report-and-a-wave-of-profit-taking/).[Meta](https://robinhood.com/us/en/stocks/META/?source=sherwood)dropped on a Financial Times report it is considering[raising tens of billions of dollars in equity to fund its AI build-out](https://sherwood.news/tech/ft-meta-seeking-tens-of-billions-in-new-capital-to-fund-ai/)after[Alphabet’s](https://robinhood.com/us/en/stocks/GOOGL/?source=sherwood)$85 billion stock offering, with both stocks falling.[Coinbase](https://robinhood.com/us/en/stocks/COIN/?source=sherwood)fell amid a broad crypto market decline and a[bearish note from Baird lowering its price target to $142 from $160](https://finance.yahoo.com/markets/crypto/articles/baird-turns-bearish-coinbase-sees-125232297.html).[Strategy](https://robinhood.com/us/en/stocks/MSTR/?source=sherwood)dropped as[bitcoin](https://robinhood.com/us/en/crypto/BTC/?source=sherwood)fell below $60,000. Digital asset treasuries have[shed $62 billion in market cap since October](https://sherwood.news/crypto/crypto-digital-asset-treasury-companies-have-shed-62-billion-in-market-cap-since-october/).[Roblox](https://robinhood.com/us/en/stocks/RBLX/?source=sherwood)fell after Wedbush said engagement is weakening and concurrent user growth has slowed every month since its August peak.[Lululemon](https://robinhood.com/us/en/stocks/LULU/?source=sherwood)shares sank after the company[cut its full-year sales and profit outlook](https://sherwood.news/markets/lululemons-stretch-getting-tested-stock-plunges-after-after-cutting-outlook/), overshadowing a Q1 beat and raising fresh concerns about the brand’s turnaround efforts.[Warner Bros. Discovery](https://robinhood.com/us/en/stocks/WBD/?source=sherwood)and[Paramount Skydance](https://robinhood.com/us/en/stocks/PSKY/?source=sherwood)fell after Reuters reported a group of states is[prepping a lawsuit to block](https://www.reuters.com/world/us-states-are-preparing-lawsuit-block-paramounts-acquisition-warner-bros-2026-06-05/)their merger.[Zcash](https://robinhood.com/us/en/crypto/ZEC/?source=sherwood)nosedived after a[counterfeit vulnerability was revealed](https://sherwood.news/crypto/zcash-nosedives-after-counterfeit-vulnerability-revealed/?utm_source=robinhood).[Broadcom](https://robinhood.com/us/en/stocks/AVGO/?source=sherwood)continued to fall for another day following[earnings results that dragged down the whole AI complex](https://sherwood.news/markets/broadcoms-underwhelming-results-are-dragging-the-ai-complex-and-the-wider-market-lower/).", "url": "https://wpnews.pro/news/stocks-tumble-amid-ai-sell-off-as-a-blowout-jobs-report-dampens-hope-of-a-rate", "canonical_source": "https://sherwood.news/markets/stocks-tumble-amid-ai-selloff-as-a-blowout-jobs-report-dampens-hope-of-a-rate-cut-this-year/", "published_at": "2026-06-05 20:02:59+00:00", "updated_at": "2026-06-05 20:56:11.461472+00:00", "lang": "en", "topics": ["artificial-intelligence", "ai-chips"], "entities": ["S&P 500", "Nasdaq 100", "Micron", "Marvell Technology", "Sandisk", "Western Digital", "AMD", "Technology Select Sector SPDR"], "alternates": {"html": "https://wpnews.pro/news/stocks-tumble-amid-ai-sell-off-as-a-blowout-jobs-report-dampens-hope-of-a-rate", "markdown": "https://wpnews.pro/news/stocks-tumble-amid-ai-sell-off-as-a-blowout-jobs-report-dampens-hope-of-a-rate.md", "text": "https://wpnews.pro/news/stocks-tumble-amid-ai-sell-off-as-a-blowout-jobs-report-dampens-hope-of-a-rate.txt", "jsonld": "https://wpnews.pro/news/stocks-tumble-amid-ai-sell-off-as-a-blowout-jobs-report-dampens-hope-of-a-rate.jsonld"}}