Fed Rate Hike Concerns Trigger Sharp Market Selloff After Strong May Jobs Report, Nasdaq Down 4%

According to BlockBeats, on June 8, strong May nonfarm payroll data (172,000 new jobs added) raised market expectations for Federal Reserve rate hikes, triggering a sharp market selloff. Last Friday's employment report pushed the Nasdaq down over 4% in a single session, with the Philadelphia Semiconductor Index plunging 10%—its largest single-day decline since 2020—wiping out approximately $2 trillion in U.S. stock market value.

Risk indicators continue mounting. Goldman Sachs projects that Meta, Microsoft, Amazon, and Alphabet will spend $5.3 trillion on AI capital expenditures between 2025 and 2030. Citigroup's global bear market warning system has 10 indicators flashing red, the highest level since the 2008 financial crisis. Reuters columnist Jamie McGeever noted that rising borrowing costs, rather than fundamental deterioration, may pose the greatest risk to the current AI-driven bull market.