Wall Street ends nine-week winning streak as tech stocks plunge

Nine weeks of green candles. Gone in an afternoon.

The S&P 500 closed down more than 2.6% on June 5, snapping its longest weekly winning streak since December 2023. The Nasdaq Composite fared worse, plunging nearly 4.2% in what became its largest single-day drop since April 2025. The culprit: a May jobs report so strong it made investors immediately recalculate the odds of the Federal Reserve reaching for the rate hike lever.

Bitcoin, never one to sit out a risk-off party, fell more than 4% to approximately $61,900. Some exchanges briefly logged prices below $60,000. Crypto-adjacent equities like Coinbase and MicroStrategy each shed about 7%, tracking the broader carnage with depressing precision.

The jobs report that broke the rally

US nonfarm payrolls added 172,000 positions in May, nearly double what analysts had penciled in. In most contexts, a strong labor market is good news. For a market that had spent nine consecutive weeks climbing on the assumption that rate cuts were coming, it was the opposite.

Semiconductors take the hardest hit

The sell-off was brutal across the tech sector, but semiconductors bore the brunt. The Philadelphia Semiconductor Index lost a staggering $1 trillion in market value in a single trading session.

Nvidia shares dropped more than 6%. AMD, Intel, Micron, and Broadcom fared even worse, falling between 8% and 13.5%.

What this means for crypto investors

Bitcoin’s decline to roughly $61,900 wasn’t a crypto-specific event. It was a macro event that happened to crypto. Digital assets have become increasingly correlated with risk-on equity positioning, particularly during sharp macro dislocations. The brief dips below $60,000 on certain exchanges suggest that leveraged positions were being liquidated as the sell-off accelerated, adding mechanical selling pressure on top of the fundamental shift in sentiment.

Coinbase and MicroStrategy dropping about 7% each reinforces the point. These are effectively beta plays on Bitcoin and crypto market activity. When institutional risk appetite contracts, they get hit from both sides: the broad equity sell-off and the crypto-specific downdraft.

For traders, the key indicators to watch now are the next CPI print and any forward guidance from Fed officials in the coming weeks. If inflation data comes in hot alongside the strong employment picture, the repricing in rate expectations could accelerate.

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