Market Summary - June 5, 2026

The financial markets experienced significant volatility today, particularly on Wall Street, where the Nasdaq 100 index dropped by 3.3%. This decline was largely driven by a sell-off in AI-related stocks, with notable pressure on semiconductor companies and major technology firms. Shares of Nvidia and TSMC fell nearly 5%, contributing to the overall downturn in the tech sector, which now represents a record-high 35% of the S&P 500 index. The S&P 500 itself saw a loss of 1.7%.

Sector Performance

Despite the overall market decline, certain sectors showed resilience. Financial institutions such as banks, along with companies like Berkshire Hathaway, Visa, Mastercard, and Coca-Cola, managed to outperform the broader market.

European Market Reaction

European markets mirrored the weak sentiment from the US. Germany's DAX index closed down by 0.75%, while France's CAC 40 experienced modest losses. The UK's FTSE 100, however, managed a slight gain. In Poland, the WIG20 index fell nearly 2%, with the banking sector underperforming. Notably, shares of Creotech Instruments dropped over 10% amid profit-taking in several overheated segments of the Warsaw Stock Exchange, particularly in space-related stocks.

US Non-Farm Payrolls Report

Investor sentiment was further impacted by the release of the US Non-Farm Payrolls (NFP) report, which showed an increase of 172,000 jobs in May, significantly surpassing market expectations of 89,000. This robust job growth, combined with ongoing geopolitical tensions between the US and Iran, has led to speculation about a hawkish stance from the Federal Reserve in 2026. The unemployment rate remained steady at 4.3%, and annual wage growth was reported at 3.4%, matching expectations but down from 3.6% in April.

Market Reactions

Following the NFP report, the US dollar experienced a sharp rally, leading to increased pressure on precious metals. Silver prices fell by 7%, while gold tested the $4,330 per ounce level, losing over 3%. In the commodities market, ICE cocoa futures dropped nearly 5%, and CBOT wheat futures fell below the 580 level. The cryptocurrency market also faced turmoil, with Bitcoin slumping to $60.5k and Ethereum losing almost 10% amid widespread panic.

Conclusion

Overall, the market's reaction to the strong employment data and the strengthening US dollar indicates a cautious outlook among investors, with concerns about the potential for a prolonged restrictive monetary policy from the Federal Reserve.