U.S. Stock Market Crashes on June 5 as Nasdaq Plunges 4.18%, S&P 500 Sinks 2.64%

According to Marketwatch, the U.S. stock market experienced a sharp selloff on Friday, June 5, with major indices falling sharply. The Nasdaq-100 index plunged 4.18%, marking its largest single-day point decline in history and worst performance since April 2025. The S&P 500 dropped 2.64%, wiping out approximately $1.8 trillion in market value in a single day. The Philadelphia Semiconductor Index (SOX) fell over 10%, erasing about $1.3 trillion and recording its largest single-day decline since March 2020.

The selloff was triggered by stronger-than-expected May nonfarm payroll data and cooling expectations for Federal Reserve rate cuts, as well as profit-taking in AI-related stocks. Broadcom's disappointing forward guidance shattered investor confidence in the AI sector's durability. President Trump expressed confusion about the market reaction on Truth Social, stating that a strong jobs report should have boosted stocks rather than triggered selling, noting that U.S. economic growth does not necessarily signal rising inflation.