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.

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 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. Technology 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. Stocks that moved lower: Momentum stocks fell as investors took profits in recent winners, with 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 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 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/ .