Nasdaq Sinks Over 500 Points as Tech Selloff Deepens

U.S. stock markets fell sharply on June 5, with the Nasdaq Composite Index dropping over 500 points to its lowest level in weeks. The selloff followed a hotter-than-expected jobs report, which pushed Treasury yields higher and weighed on tech-heavy indices. The Nasdaq recorded its third straight daily decline and its worst single-day percentage drop since March 26, while the S&P 500 snapped a nine-week winning streak. The Dow Jones Industrial Average fell triple digits but remained on track for a third consecutive weekly gain. Broadcom (AVGO) led semiconductor declines with a 4.9% drop, extending losses from a post-earnings selloff the previous day. The tech sector’s struggles contributed to broader market weakness, with investors reacting to rising interest rate expectations. Options traders focused on aerospace and defense stock Planet Labs PBC (PL), which fell 22.2% to $33.85 despite better-than-expected earnings and revenue. The company announced a $1.5 billion stock offering but disappointed with guidance due to margin pressures. Heavy options trading, including 37,000 calls and 26,000 puts—six times the average daily volume—highlighted bearish sentiment. Solidion Technology (STI) surged 57% to $35.56 after securing over 30 patents for space-based AI batteries, following a 360% jump the prior day. Zumiez (ZUMZ) dropped 22.6% to $18.18 after reporting a wider-than-expected first-quarter loss of 82 cents per share and a weak forecast, despite revenue beating expectations. The stock hit its lowest level since August and declined 30.4% year-to-date.