Tesla Drops with Nasdaq’s 4.77% Plunge after Jobs Surprise and Yield Surge
TSLA•Tesla shares fell as part of a 4.77% drop in the Nasdaq 100, the worst session since April 2025, after May nonfarm payrolls rose by 172,000 and 10-year Treasury yields topped 4.5%. The entire Magnificent Seven tech cohort posted losses, with the VanEck Semiconductor ETF plunging 10%.
1. Market Sell-Off Driven by Strong Jobs Report
US stock indexes slid sharply on May’s stronger-than-expected nonfarm payroll gain of 172,000 and an unchanged 4.3% unemployment rate, fueling bets on further Fed rate hikes. The S&P 500 fell 2.64%, the Nasdaq 100 plunged 4.77%—its worst session since April 2025—and the Dow declined 1.35%.
2. Treasury Yields Surge and Sector Impact
The 10-year Treasury yield topped 4.5% and the 30-year yield rose above 5%, prompting a sell-off in rate-sensitive sectors. The VanEck Semiconductor ETF plunged 10%, dragging chipmakers to multibillion-dollar market-cap losses and shifting retail sentiment on key benchmark ETFs to bearish.
3. Tesla Shares Slip Alongside Magnificent Seven
Tesla shares dropped in line with the broader Magnificent Seven tech cohort, which all posted losses Friday. Rising rate expectations and heightened volatility have increased pressure on growth-oriented stocks, raising questions over valuation and near-term outlook.
