Nasdaq 100 turns negative, erases gain of as much as 0.5%

The Nasdaq 100 erased gains of as much as 0.5% and turned negative on Friday, June 5, 2026, amid a broad sell-off in technology stocks. The index, which tracks the performance of 100 of the largest non-financial companies listed on the Nasdaq, fell in line with the broader Nasdaq Composite, which closed down 4.18% for its largest decline since early 2025. The decline was driven by a sharp selloff in semiconductor and AI-related stocks, with the iShares Semiconductor ETF dropping 10% for its worst day since March 2020.

The sell-off was exacerbated by a stronger-than-expected jobs report, which showed 172,000 nonfarm payrolls added in May—well above the 80,000 expected—sparking concerns about prolonged high interest rates and slowing economic growth. Treasury yields surged, with the 10-year yield rising above 4.5%, adding pressure on growth-oriented tech stocks. Investors rotated into defensive sectors such as consumer staples and healthcare, with the Consumer Staples sector rising 2%.

The selloff also coincided with heightened speculation about the upcoming initial public offering (IPO) of SpaceX, which is expected to be the largest in history with a valuation of $1.77 trillion. Some analysts suggested that investors may be rebalancing portfolios ahead of the IPO, shifting capital away from tech. Despite the recent decline, the iShares Semiconductor ETF remains up 79% for the year.