US equity markets extended losses sharply as the Nasdaq 100 fell further by 3% and the S&P 500 declined by 1.7%, reflecting broad-based selling pressure across major indices. The technology-heavy benchmark recorded its worst drop since April 2025’s tariff shock, while the S&P 500 snapped nine straight weeks of gains. The downturn was driven by disappointing guidance from Broadcom Inc. and hotter-than-expected jobs data, which reignited fears of a Federal Reserve rate hike.

Index Performance Overview

The latest figures highlight intensifying weakness across key US equity benchmarks, with the updated movements summarised below:

The Nasdaq 100's steeper decline of 3.00% underscores the relatively greater pressure on technology-oriented segments of the market compared to the broader S&P 500, which fell 1.70%. Nasdaq futures also recorded a sharper drop of 0.60% against S&P 500 futures, which slipped 0.30%, highlighting a persistent divergence in sentiment between tech-heavy and broader market indices.

Broadcom and Semiconductor Selloff

Broadcom Inc. beat expectations last quarter and guided next-quarter sales to $29.4 billion, above the Street’s $28.6 billion. However, CEO Hock Tan kept full-year AI semiconductor guidance unchanged at “in excess of $100 billion,” puncturing sky-high expectations. The stock collapsed 12.6% on Thursday and over 7% on Friday, dragging the entire AI infrastructure complex with it. The semiconductor sector, tracked via the iShares Semiconductor ETF, tumbled more than 10% between Thursday and Friday, on track for its worst two-day drop since April 2025’s tariff shock.

Economic Data and Rate Hike Fears

Risk sentiment sank further following the May jobs report. Payrolls rose 172,000 versus an 85,000 consensus, with March and April revised up by a combined 93,000. Unemployment held at 4.3%. Hotter-than-expected hiring, layered on top of April CPI at 3.8% year-over-year – the hottest since May 2023 – pushed the bond market to bet the next Federal Reserve move is up, not down. Money markets now almost fully price a rate hike by year-end.

Crypto and Auto Sector Moves

The carnage was deepest in digital assets. Bitcoin plunged below $60,000, a 17% weekly drop, its worst since November 2022. Strategy Inc., formerly MicroStrategy, dropped roughly 25% on the week. Chairman Michael Saylor disclosed the sale of 32 Bitcoin for $2.5 million between May 26 and 31, his first sale since December 2022. In the auto sector, Ford Motor Co. shed 15% after recalling nearly 420,000 Expedition and Lincoln Navigator SUVs over a seat belt pretensioner defect.

The S&P 500 slipped after market open, falling 52.48 points, or 0.69%, to 7,531.83, reversing the prior session's unofficial gain of 33.78 points, or 0.45%, which had lifted the index to an unofficial close of 7,587.46. The latest decline extends the pullback from the index's unofficial record close of 7,612.12, with the benchmark now trading notably below that peak. The move follows a prior intraday drop to 7,526.01 after the preceding session's market open, suggesting continued volatility around current levels.

Session Performance Snapshot

The table below captures the S&P 500's movement across key stages of recent trading activity:

Recovery Trajectory and Context

The latest decline follows a broader recovery trajectory that had unfolded over multiple sessions. The S&P 500 had earlier dipped to 7,401.44 in early trading, falling 31.53 points, or 0.42%, before staging a turnaround to close unofficially at 7,478.39. Building on that recovery, the index rose 44.40 points, or 0.59%, to 7,517.87 after market open before setting a new record closing level of 7,519.26. Subsequent sessions saw the index advance through unofficial closes of 7,564.22 (up 0.58%), 7,582.95 (up 19.32 points, or 0.26%), and 7,600.71 (up 20.65 points, or 0.27%), before an additional gain of 12.16 points brought the index to its unofficial record close of 7,612.12.

The pullback from that record has now deepened, with the index trading at 7,531.83 after the latest market open — below both the prior session's unofficial close of 7,587.46 and the earlier intraday low of 7,526.01 — leaving the benchmark well off its all-time closing high.