Chips Wreck — Streak Breaks

Rundown · 2026-06-08

Friday: Nasdaq -4.18% worst day since April 2025, the 9-week S&P streak ENDED at 7,383.74 (-2.64%) as +172K NFP crushed +80K est, sending the 10Y to 4.54%; SOX -10% wiped $1T+ from chips.

Market Performance

• S&P 500: 7,383.74 (-2.64%) — biggest single-day drop in months; 9-week streak snapped
• Nasdaq: 25,709.43 (-4.18%) — worst day since April 2025, gave back 2 weeks in one session
• Dow: 50,866.78 (-1.40%) — -695 points; gave back most of Thursday's record rally
• Russell 2000: -3.47% — joined the selloff; rotation didn't help once yields ripped
• Sector leaders: Cons. Staples (Colgate +4%, KO +3%), Health Care (JNJ +2%) · Laggards: Tech, Comm Services
• 10Y yield: 4.54% — back up after the Tue–Thu unwind; 30Y above 5% again
• WTI crude: ~$87 (-3%) — even oil sold despite Iran tension
• SOX: -10%+ — worst session since the April 2025 tariff panic; >$1T chip cap erased
• Chip carnage: MU -13.3%, MRVL -16%, AMD/INTC -11%, NVDA -6.2%, AVGO -7.9%

Hot NFP Resets the Entire Rate Path

• +172K May payrolls vs +80-88K consensus — biggest beat since early 2025
• Prior months revised up 93K combined — labor market firmer than feared
• Unemployment 4.3% unchanged for a 3rd straight month — full-employment baseline
• Wage growth +3.4% YoY (eased) — softer wages prevented worse damage
• Fed hike odds for 2026 spiked; markets pricing higher-for-longer with hikes back on the table
• Warsh's first FOMC mid-June now walks in with rates needing to stay restrictive

Chip Trade Has Its Reckoning

• AVGO -23% in 3 sessions since Wednesday's "AI guidance held flat" disappointment
• Friday SOX -10%+ — the worst single-day drop since the April 2025 tariff panic
• >$1 trillion in chip-cohort market cap erased in a single session
• Sell-the-news on lofty valuations met the 10Y at 4.54% — multiple-compression fuel everywhere
• Defensives finally got the bid: Colgate +4%, KO +3%, JNJ +2%
• "Tech companies benefiting from AI may have become too expensive" — the consensus warning

Notable Movers

• (CMG) +4% — JPMorgan upgrade to Overweight ahead of an expected summer same-store-sales recovery
• (LULU) -9% — cut FY revenue outlook to $11.0-$11.15B from $11.35-$11.5B; the ugliest non-chip print
• (MU) -13% — +172K NFP sparked broad tech selling on Fed rate-hike fears; the chip cohort cratered

Private Dealmaking

• Supabase (AI app backend tools) — $500M
• Helion (nuclear fusion) — $465M
• Generalist (robotics · SF) — $400M
• Contraline (male contraceptives) — $92.5M
• CereVasc (neuro medical devices) — $85M
• Endra (industrial design · Stockholm) — $50M

TLDR

• 9-week S&P streak ENDED: S&P -2.64% to 7,383.74, Nasdaq -4.18% worst since April 2025
• NFP +172K vs +80K est crushed expectations; 10Y to 4.54%, 30Y back above 5%
• SOX -10%+ in one day, >$1T erased; MU -13%, MRVL -16%, AMD/INTC -11%
• AVGO -23% in 3 sessions since Wednesday's "AI guide unchanged" disappointment
• Defensive rotation finally got a bid: Colgate +4%, KO +3%, JNJ +2%
• Wage growth +3.4% eased; Warsh's first FOMC mid-June now walks in with hikes back on the table

The Bottom Line

The reckoning is here. The chip trade just had its worst day in 14 months and the 9-week streak broke on the same print that reset the rate path. >$1T erased in one session doesn't end the AI thesis — it ends the certainty premium. The next test is Warsh's first FOMC in 10 days: if he sounds hawkish into a hot labor print, 10Y at 4.50% becomes the floor, not the ceiling, and the defensive rotation goes from one-day relief to real leadership.

_For informational purposes only. Not investment advice._