# June 5 Selloff: What Just Happened
The Nasdaq dropped 4.18% today in its worst single session since April 2025. Semiconductor stocks led the decline. The S&P 500 snapped a nine-session winning streak earlier this week, and today's action confirmed the reversal.
## The Catalyst
The May nonfarm payrolls report came in at 172,000 jobs versus an 80,000 consensus. That blowout number sent Treasury yields sharply higher and killed any remaining hope for rate cuts this year.
Good economic data is bad for risk assets when it means the Fed stays hawkish.
## The Damage
Semiconductors took the hardest hit. The SOXX (semiconductor ETF) dropped over 6%. $NVDA, $AMD, and $AVGO all fell sharply on heavy volume.
The selling was broad-based but concentrated in high-multiple growth names. Defensive sectors (utilities, healthcare, staples) held up relatively better, confirming this as a rotation event, not a liquidity crisis.
## What It Means
The market had priced in a soft landing with rate cuts. That narrative just broke. The new reality: the economy is stronger than expected, inflation is stickier than expected, and the Fed has no reason to ease.
For traders, the key question is whether this is a healthy reset or the start of a larger correction. Watch the 50-day moving average on $QQQ as the first line of defense.
## Levels to Watch
- $QQQ support: $700-$705
- $SPY support: $585-$590
- If those hold, this is a buyable dip. If they break, the correction deepens.
#MarketSelloff #Nasdaq #Semiconductors #JobsReport #Volatility
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