Wall St rout deepens after strong US jobs data; $1 trillion wiped out under 3 hours

US stock markets tumbled on May 5 as investors reacted to a stronger-than-expected jobs report, which fueled concerns that interest rates could remain elevated for longer. The sell-off was led by technology and semiconductor stocks, dragging major indices sharply lower and wiping out roughly $1 trillion in market value from the S&P 500 in less than three hours. 

The tech-heavy Nasdaq Composite fell 3.1%, while the S&P 500 declined 1.9%. The Dow Jones Industrial Average dropped 465 points, or 0.9%, during trading. 

According to market commentary platform The Kobeissi Letter, the S&P 500 extended losses to 1.5% on the day, erasing approximately $1 trillion in market capitalization in under three hours. The Nasdaq 100 was down 3.4%, putting it on track for its steepest single-day decline since October 10, 2025. 

Jobs data surprises markets 

The sell-off followed the release of May employment data from the US Bureau of Labor Statistics, which showed the labour market remains significantly stronger than anticipated. 

Nonfarm payrolls increased by 172,000 jobs in May, well above economists’ expectations of 80,000 additions. Meanwhile, the unemployment rate held steady at 4.3%, matching forecasts. 

The stronger jobs report prompted investors to reassess expectations for Federal Reserve rate cuts, sending Treasury yields higher. Rising bond yields tend to pressure growth and technology stocks because they reduce the attractiveness of future earnings. 

Futures charts show sharp intraday drop 

Market futures reflected the intensity of the sell-off. 

The Nasdaq 100 E-mini Futures chart shared by The Kobeissi Letter showed contracts plunging from around 30,100 points during the session to 29,482.5, a decline of more than 600 points. At one stage, futures briefly dipped below 29,400, highlighting the severity of the intraday selling pressure. 

Similarly, S&P 500 E-mini Futures dropped from near 7,570 earlier in the session to 7,487, a fall of roughly 80 points. The charts showed a near-continuous series of red candles through the trading day, indicating sustained selling with only brief rebounds. 

The sharp decline in futures suggested investors rapidly reduced exposure to risk assets after the economic data release and subsequent jump in bond yields. 

Weekly performance turns negative 

Friday’s sell-off also pushed major benchmarks into weekly losses. 

The S&P 500 is now down more than 1% for the week, putting it on track for its first negative week in 10 weeks. The Nasdaq Composite is headed for a weekly decline of roughly 3%, reflecting broad weakness in technology shares. 

The Dow Jones Industrial Average has been relatively resilient but is now on track to finish the week with a gain of less than 1%.