S&P 500 Plunges 2.64% on May 5, Erases $1.8 Trillion as Strong Jobs Data Cools Rate-Cut Hopes

According to MarketWatch, the S&P 500 plunged 2.64% on Friday May 5, erasing $1.8 trillion in market value, after stronger-than-expected U.S. May employment data triggered concerns the Federal Reserve will delay interest rate cuts or even raise rates further. The Nasdaq-100 dropped 4.18%, marking its largest single-day point decline in history.

The semiconductor index (Philadelphia Semiconductor Index) fell over 10%, its worst day since March 2020, as AI-related gains unwound amid Broadcom's disappointing guidance and concerns that major tech firms like Meta and Alphabet plan large share issuances to fund AI infrastructure investments.