Strong Jobs Data Sparks 2.65% Nasdaq Drop, Chips Slump
AMD•May payrolls rose by 172,000 versus an expected 80,000, lifting the probability of a Fed rate hike by December to 70%. The Nasdaq fell 2.65%, with AI and semiconductor stocks like AMD leading declines as higher bond yields pressured valuations.
1. May Jobs Report Exceeds Expectations
The US added 172,000 payrolls in May, well above the consensus 80,000 forecast. This stronger-than-expected reading pushed the implied odds of a December Federal Reserve rate increase to roughly 70%, heightening borrowing-cost concerns across markets.
2. Semiconductor Sector Plunges
The tech-heavy Nasdaq Composite declined 2.65% on the day, as elevated bond yields and stronger rate-hike odds spurred a rotation out of growth and AI-related names. Chipmakers underperformed broader indices, with leading players marking sharp intraday losses.
3. AMD Reacts to Market Headwinds
AMD shares tracked the sector slump, reflecting investor caution over valuation and funding costs. The pullback in AI-centric semiconductors underscores concerns that higher yields may dampen capital spending in cloud and data-center markets.
