Global Weekly Equities Report - June 5, 2026
Global Equities: The U.S. Market
US Equity Benchmarks Retreat as Technology Selloff Ends Historic Rally
U.S. equities closed the week sharply lower as renewed concerns over interest rates and elevated bond yields triggered broad-based selling across risk assets. The Nasdaq Composite fell 4.68% to close at 25,709.43, while the S&P 500 declined 2.59% to 7,383.74. The Dow Jones Industrial Average slipped 0.32% to 50,866.78, while the MSCI World Index lost 2.24% to finish at 4,755.77. The decline marked a notable reversal in sentiment after several weeks of sustained gains across major equity markets.
Strong Jobs Data Revives Higher-for-Longer Rate Concerns
Market sentiment deteriorated as investors reassessed the outlook for monetary policy following another resilient labor market report. On June 5, the May Nonfarm Payrolls report showed the U.S. economy added 172,000 jobs, surpassing expectations for a third consecutive month and reinforcing confidence in underlying economic strength. However, the stronger-than-expected data also reignited concerns that the Federal Reserve could keep interest rates elevated for longer. As a result, equities came under pressure toward the end of the week as investors adjusted expectations for future rate cuts.
Sector Rotation Intensifies as Investors Move Away from Growth Stocks
Technology shares bore the brunt of the selloff, with the Nasdaq suffering its worst single-day decline of the year after falling more than 1,100 points in one session. Semiconductor stocks were particularly weak, with Micron, Intel, and Nvidia posting significant losses as investors rotated away from growth sectors. Meanwhile, Treasury markets experienced heavy selling, pushing the 2-year U.S. Treasury yield to a one-year high of 4.16% as traders priced in a greater probability of additional rate hikes before the end of 2026. Defensive sectors held up relatively better, with Real Estate (+1.52%), Financials (+1.31%), and Consumer Staples (+0.95%) outperforming, while Technology (-5.42%), Consumer Discretionary (-6.20%), and Communication Services (-3.91%) lagged.
