The Nasdaq 100 cratered as much as 5% on June 5, marking the kind of day that makes portfolio managers reconsider their life choices. The Nasdaq Composite closed down 4.18%, shedding 1,121.53 points to land at 25,709.43, its worst single-day performance since April 2025.
The May employment data showed the US economy added 172,000 jobs, nearly double the 88,000 that economists had forecast. The 10-year Treasury yield climbed above 4.5%. The 30-year yield punched through 5%. When yields rise like that, the math changes for every stock whose valuation depends on future earnings, which is basically the entire Nasdaq 100.
Semiconductors took the hardest hit
A chip index gauge fell approximately 9% to 10% on the day. Marvell Technology dropped 16%. Micron Technology fell 13%. Intel and AMD each lost somewhere between 7% and 11%.
Meta Platforms also took a 5.5% hit, with speculation around a significant stock sale adding selling pressure on top of the broader macro-driven rout.
The damage extended well beyond tech. The S&P 500 closed 2.64% lower. The Dow Jones dropped 1.35%. Multi-week winning streaks across major indices ended abruptly.
What this means for investors
For crypto investors specifically, rising real yields tend to pull capital away from risk assets broadly. A 10-year yield above 4.5% creates genuine competition for speculative capital in a way that a 3.5% yield simply does not.
The semiconductor selloff also has indirect implications for the crypto mining industry. Companies like Nvidia, AMD, and others in the chip supply chain serve both AI and crypto mining markets, and when their stocks get hammered, it often reflects broader concerns about capital expenditure cycles that can affect hardware availability and pricing for miners.