Daily summary: Nasdaq 100 drops 3%, precious metals and Bitcoin are falling amid US dollar strength

• Trading on Wall Street is highly volatile today amid a deep sell-off in AI-related stocks. Semiconductor companies, Big Tech giants, and recently overheated memory-chip names such as SanDisk and Micron are all under heavy pressure, while Nvidia and TSMC shares slide almost 5%. As a result, the Nasdaq 100 is down 3.3%, while the S&P 500 is losing 1.7% as technology stocks—now accounting for a record-high share of roughly 35% of the index—lead the broader market lower. Relative outperformers in the US include banks, Berkshire Hathaway, Visa, Mastercard, and Coca-Cola.
• Sentiment in European markets was also weak. Germany’s DAX closed 0.75% lower, France’s CAC 40 posted modest losses, while the UK’s FTSE 100 managed a slight gain. Poland’s WIG20 fell nearly 2%. The banking sector underperformed, and shares of Creotech Instruments (CRI.PL) dropped more than 10% amid broader profit-taking across several overheated segments of the Warsaw Stock Exchange, including space-related stocks.
• Investors were unsettled by the exceptionally strong US Non-Farm Payrolls (NFP) report. Combined with ongoing tensions between the United States and Iran, the data can be interpreted as supporting expectations of a relatively hawkish Federal Reserve stance in 2026. The US dollar is rallying sharply today, while US Treasury yields have moved significantly higher.

The US Non-Farm Payrolls (NFP) report for May showed an increase of 172,000 jobs, significantly above market expectations of 89,000 and compared with 115,000 in the previous month. Following the release, the US dollar strengthened and Treasury yields moved higher, while Wall Street sentiment weakened amid concerns that the Federal Reserve may maintain a restrictive monetary policy stance for longer.

• Private-sector employment increased by 120,000 jobs, compared with forecasts of 89,000 and 123,000 in the previous month. The unemployment rate remained unchanged at 4.3%, in line with expectations.
• Manufacturing employment rose by 7,000 jobs, beating expectations of 2,000 and reversing the previous month's decline of 2,000 jobs. Government employment surged by 52,000 jobs, compared with a decline of 8,000 in the prior month.
• Annual wage growth came in at 3.4%, matching market expectations and down from 3.6% in April. The labor force participation rate remained unchanged at 61.8%, also in line with forecasts.

• The sharp rally in US Dollar Index (USDIDX) futures is putting significant pressure on precious metals. Silver is down 7%, while gold is testing the $4,330 per ounce level, losing more than 3%. In the commodity market, ICE cocoa futures (COCOA) are down nearly 5%, while CBOT wheat futures are extending losses and have fallen back below the 580 level. Bitcoin slumps to $60.5k while Ethereum loses almost 10% amid cryptocurrency market panic.

Source: xStation5

Source: xStation5