Key facts
- Global markets experienced significant volatility following a strong U.S. jobs report for May.
- The U.S. added 172,000 jobs in May, exceeding expectations and increasing rate hike probabilities.
- The Nasdaq Composite recorded its largest one-day point drop on record, falling over 1,121 points.
- The S&P 500 lost an estimated $1.8 trillion in market value.
- South Korea's KOSPI index fell 6.29%, its worst performance this year.
- The Japanese yen touched 160 per dollar, nearing previous intervention levels.
- Oil prices rose over 3%, with Brent crude futures at $96.17 and WTI futures at $93.91.
- Alphabet is raising $80 billion for AI initiatives, including a $10 billion private placement with Berkshire Hathaway.
- AI startup Anthropic has confidentially filed for an IPO.
- Long-term Bitcoin holders realized $2.4 billion in losses over 48 hours ending June 5, 2026.
- The European Central Bank is expected to raise interest rates on Thursday.
- Citigroup raised its year-end target for the S&P 500 index to 8,100.
Global markets faced widespread declines and volatility, primarily triggered by a stronger-than-expected U.S. jobs report for May, which added 172,000 jobs and increased expectations of Federal Reserve rate hikes. This data led to a significant sell-off in technology and chip stocks across Wall Street, with the Nasdaq Composite experiencing its largest one-day point drop on record, falling over 1,121 points, and the S&P 500 losing an estimated $1.8 trillion in market value. The S&P 500's nine-day winning streak concluded, and major U.S. stock indexes, including the Dow, S&P 500, and Nasdaq, fell sharply. Technology shares were particularly hard hit, with Nvidia down 6.2% and Meta down 5.5%, contributing to the worst day for U.S. stocks since October.
Asian markets mirrored the downturn, with South Korea's KOSPI index falling 6.29% and Japan's Nikkei 225 dropping 1.34% from record highs. Australia's ASX 200 also declined. The Japanese yen weakened significantly, touching 160 per dollar, a level that prompted warnings from officials and potential intervention. Bank of Japan Governor Kazuo Ueda signaled a possible June rate hike due to inflationary risks from energy shocks, with traders pricing in 80% odds for a June 16 hike. European shares also ended lower, with the STOXX 600 down 0.3% for the day and 0.5% for the week, as the tech rally paused.
Amidst these market shifts, oil prices surged over 3% due to renewed Israeli strikes on Iran and attacks on Lebanon, diminishing hopes for an end to the wider conflict. Brent crude futures rose to $96.17 a barrel, and U.S. WTI futures reached $93.91, with oil prices approaching $100 per barrel due to structural supply disruptions. Cryptocurrencies also experienced a significant sell-off, with Bitcoin falling below $60,000 and experiencing its worst weekly decline since July 2024, with over $1.6 billion in crypto liquidations occurring. Long-term Bitcoin holders realized $2.4 billion in losses over 48 hours ending June 5, 2026, as the spot price breached the Short-Term Holder Realized Price.