SPDR S&P 500 ETF Drops 3% on Strong Jobs Data, Rate-Hike Bets
SPY•SPY•SPY•SPY•SPY dropped around 3% on June 5 after the S&P 500 slid 2.64% due to strong May jobs data (172k vs 80k forecast, 4.3% unemployment) fueling rate-hike bets and lifting 10-year yields above 4.5%. Tech and chip stocks tumbled, erasing $1.3 trillion in semiconductor market value despite bullish SPY sentiment.
The SPDR S&P 500 ETF fell around 3% on June 5, underperforming the 2.64% drop in the S&P 500 as investors reacted to renewed expectations of Federal Reserve tightening.
U.S. nonfarm payrolls rose by 172,000 in May versus an 80,000 estimate and the unemployment rate held at 4.3%, a combination that reinforced bets on further rate increases.
The 10-year Treasury yield climbed above 4.5% and the 30-year yield topped 5%, underscoring market anticipation of continued Fed rate hikes to curb inflation.
Major technology and semiconductor stocks plunged, wiping out roughly $1.3 trillion in semiconductor market cap, even as retail sentiment on the SPY ETF remained broadly bullish.
Marketwatch
