- Market Overview
- 1. Wall Street: 9-Week Winning Streak Ends in Flames
- The Trigger
- 2. Semiconductor Meltdown
- 3. Treasury Yields Surge
- 4. Gold Crashes — Worst Drop in Weeks
- 5. Bitcoin Cracks Below $60,000
- 6. Oil: Cooling But Still Up for the Week
- 7. US Dollar Strengthens Broadly
- 8. Vietnam Market: VN-Index Extends Losing Streak
- 9. Other Commodities
- Outlook for Next Week
- Key Takeaways
The first trading week of June 2026 closed with extreme volatility across global financial markets. The May US Nonfarm Payrolls report released on June 5 delivered a seismic shock — payrolls came in at double the expected figure, forcing markets to completely reassess the Federal Reserve’s rate path.
The result was a wave of mass selling across equities, commodities, and cryptocurrencies. Here is a comprehensive breakdown of the key developments.
All three major US indexes suffered heavy losses on June 5, marking the worst trading day since October 2025:
- Dow Jones: -695.15 pts (-1.35%) to 50,866.78
- S&P 500: -200.57 pts (-2.64%) to 7,383.74
- Nasdaq Composite: -1,121.53 pts (-4.18%) to 25,709.43
The decline ended Wall Street’s 9-week winning streak — the longest since December 2023. The selloff was concentrated in mega-cap tech stocks, particularly the semiconductor sector that had led the market in recent months.
The May jobs report: The US economy added 172,000 new jobs, more than double the 85,000 consensus estimate. This crushed any remaining hopes for near-term Fed rate cuts and even raised expectations for a rate hike at the December meeting.
Ryan Detrick, Chief Market Strategist at Carson Group, commented: “After the nine-week record run in equities, specifically tech and semiconductors, the dam broke today. The stronger-than-expected jobs report puts the Fed in a tough spot regarding any interest rate cut for the rest of the year. The market is throwing a fit by hitting the biggest winners so far this year.”
The Philadelphia Semiconductor Index (SOX) crashed 10.26% on June 5 — its worst single-day decline in months. Profit-taking hit the sector across the board:
- Nvidia: -6.2% (hundreds of billions wiped from market cap)
- Broadcom: -7.9%
- Micron: -13.3% (biggest loser in the S&P 500)
- Intel, AMD: Deep losses
Overvaluation of AI-linked stocks became the central issue after months of relentless rallying. “Today’s move was more about positioning than fundamentals,” said Ohsung Kwon, Chief Equity Strategist at Wells Fargo. “The semiconductor sector was way overbought. I don’t think this is the end of the semi bull market.”
US Treasury yields spiked sharply after the jobs data, putting massive pressure on growth stocks:
- 10-year yield: 4.54% (multi-month high)
- 2-year yield: 4.16% (up nearly 10bps on June 5 alone)
According to CME FedWatch data, markets now price a >60% probability of a Fed rate hike at the December meeting, with virtually zero chance of a cut in 2026.
Gold prices plummeted $146 per ounce during the June 5 session — a rare magnitude of decline — trading around $4,330/oz on the morning of June 6:
- XAU/USD: ~$4,330/oz (-3.3%)
- Silver: Down 7%
Gold faced pressure from three directions: a strengthening US dollar, surging bond yields, and the prospect of prolonged tight Fed policy. The metal broke below its 200-day moving average, signaling the short-term downtrend could persist.
The cryptocurrency market underwent a severe selloff, with Bitcoin crashing below the psychological $60,000 level:
- Bitcoin (BTC): ~$60,600 (-4.8% in 24h, -20% for the week)
- Ethereum (ETH): ~$1,566 (-6.93%)
- Total crypto market cap: $2.10T (-2.28%)
- 91% of coins recorded losses in the last 24 hours
Bitcoin is now down over 52% from its all-time high of $126,000 set in October 2025. The decline is attributed to concerns that Strategy (formerly MicroStrategy) has paused Bitcoin purchases to manage debt, coupled with billions of dollars in long-position liquidations after the prolonged selloff.
Oil prices edged lower on Friday but still logged their first weekly gain after three consecutive losing weeks:
- Brent crude: $94.19/bbl (-0.9%) — up 2.4% for the week
- WTI crude: $91.91/bbl (-1.2%) — up 5.1% for the week
Middle East geopolitical tensions and the ongoing Strait of Hormuz dispute continued to support oil prices. However, Oman’s confirmation that operations at Mina al Fahal port were running normally helped ease some supply disruption fears.
The DXY index surged and is testing the 99.70–99.85 resistance zone, with the dollar the strongest currency in the G10 space:
- EUR/USD: Below 1.1550, heading toward 1.1500–1.1515 support
- GBP/USD: Testing 1.3335–1.3350 support zone
- USD/JPY: Back near 160, raising intervention risk from the BOJ
- USD/CAD: Heading toward 1.3950–1.3965 resistance
Vietnam’s stock market recorded its third consecutive session of decline on June 5, with selling accelerating late in the session:
- VN-Index: -12.2 points to 1,329.89
- Declining stocks: 233 vs 76 advancing
- Volume: VND 24 trillion ($940M), up VND 4.8 trillion from the prior session
Biggest drags: TCB (-2.57), VND (-3.8), CII (-4.5), SSI (-1.46), FPT (-1.54). Supporters: HPG (+1.17), STB (+0.97), DIG (+1.12), DBC (+1.36).
Foreign investors: Net sold VND 2,042 trillion on HOSE, concentrating on VHM (VND 1,551 billion) and VCI (over VND 100 billion). HPG was the top net buy at VND 94 billion.
Analysts note the VN-Index is approaching a strong support zone of 1,310–1,320 points, which could provide temporary balance if sentiment stabilizes.
- Copper: -1.1% to $13,771.50/t (LME), still up 11% YTD
- Aluminum: -0.4% ($3,651.50/t)
- Iron ore: -0.95% (CNY 778.5/t), -3.2% for the week
- Palm oil: -1.02% (MYR 4,554/t)
- Robusta coffee: -1.02% ($3,316/t)
The Fed’s June 16–17 policy meeting will be the market’s main focus next week. This will be the first meeting chaired by Fed Chair Kevin Warsh. Markets expect the Fed to hold rates steady, but any hawkish signals about the policy path could trigger fresh volatility.
Key data releases for the week of June 8–12:
- Monday Jun 8: NY Fed 1-Year Consumer Inflation Expectations (May)
- Wednesday Jun 10: May CPI — the most important data point after NFP
- Thursday Jun 11: Weekly jobless claims
- Friday Jun 12: University of Michigan Consumer Sentiment (June preliminary)
The blowout May jobs report triggered a massive repricing across global financial markets. Surging bond yields and expectations that the Fed may need to raise rates are creating severe headwinds for risk assets. In this environment, traders should prioritize risk management, limit leverage, and wait for clearer signals from the Fed at its mid-June meeting.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Always conduct your own research before making trading decisions.
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