Intel Shares Slide as Semiconductor Sector Plunges Over 10% and Nasdaq Drops 4.2%
INTC•Intel shares declined on June 5 as the PHLX Semiconductor Sector index dropped over 10%, contributing to a 4.2% Nasdaq slide. A stronger-than-expected May jobs report spiked bond yields and heightened concerns over AI spending sustainability.
1. Market Reaction to Jobs Report
A stronger-than-expected May jobs report pushed U.S. bond yields sharply higher. The yield spike increased financing costs for technology firms, intensifying selling pressure on growth-oriented stocks.
2. Impact on Intel and Chip Sector
The PHLX Semiconductor Sector index plunged over 10% on June 5, dragging Intel shares and peers lower. The Nasdaq Composite fell 4.2%, marking its worst session in 14 months as chip stocks from Broadcom to Nvidia saw significant declines.
