US Market Wrap: Stocks Slide on Chip Selloff as Oil, Yields and Fed Rate-Hike Bets Drive Volatility

index Update

US stocks dropped sharply on Friday as a semiconductor selloff weighed heavily on the market, with the Nasdaq falling 4.2%, the S&P 500 losing 2.6%, and the Dow slipping 1.4% after hitting a record high the previous day. Broadcom, Marvell, Micron, Intel, and AMD led the decline, while stronger-than-expected May jobs data pushed Treasury yields higher and raised concerns that elevated borrowing costs could pressure growth and Investment. For the week, the S&P 500 declined more than 2%, while the Nasdaq lost around 4.7%.

Market Movers

Among the top-performing stocks of the session Springview Holdings Ltd. surged 123.94%, while Solidion Technology, Inc. rallied 57.29%. On the losing side, Enigmatig Limited fell 48.39%, while Hang Feng Technology Innovation Co., Ltd. declined 36.89%, making them the weakest performers during the trading day.

Commodities Update

WTI and Brent Crude eased to $91.5 and $94 per barrel, respectively, after earlier spikes, as Iranian media said Tehran had ended military operations against Israel, easing concerns over further escalation and potential disruption to Persian Gulf oil flows. However, uncertainty remained as Israel had not signaled de-escalation, while OPEC+ approved a 188,000 bpd production Quota increase for July and weaker Chinese Import Demand helped limit Supply-pressure concerns.

Meanwhile, gold and silver fell to more than two-month lows, slipping below $4,300 and $67 an ounce, respectively, as stronger-than-expected US jobs data raised expectations of a possible Fed rate hike in December, outweighing safe-haven demand from renewed Iran-Israel tensions and ongoing Strait of Hormuz disruptions.

Macro Updates

The dollar index slipped below 100 on Monday after briefly reaching 100.2, as traders monitored Middle East tensions and signs of possible Iran-Israel de-escalation. Reports that Iran had halted strikes, along with President Trump’s comments on ceasefire talks, helped oil prices pare gains, though Inflation concerns persisted amid risks from a prolonged conflict. Markets are pricing in about a 52% chance of a Fed rate hike by October, with investors now awaiting US CPI and PPI data for further inflation cues. The dollar weakened broadly, led by losses against the Australian dollar and Japanese yen.

Bonds Commentary

The US 10-year Treasury Yield rose to around 4.57% on Monday, its highest level in two weeks, after stronger-than-expected May jobs data increased expectations of a Fed rate hike later this year. The economy added 172,000 jobs versus forecasts of 85,000, while Unemployment held at 4.3%, lifting the probability of a December rate hike to nearly 70%. However, the Fed is still expected to hold rates steady at its June 16–17 meeting, while higher oil prices from Middle East tensions added to inflation concerns and supported expectations of tighter policy.

Futures Update

US Equity futures rose firmly on Monday, with S&P 500 and Nasdaq 100 contracts up around 1% and Dow futures gaining 0.4%, supported by signs of cautious Middle East de-escalation after Iran said it had ended military operations against Israel. Easing oil prices and Treasury yields also helped improve risk sentiment. Meanwhile, chip stocks rebounded after last week’s Broadcom-led selloff, with Nvidia up over 2% premarket and Micron and Marvell gaining more than 4% each, as investors refocused on AI-related demand ahead of Oracle’s Earnings on Wednesday.

Stocks tumbled sharply on Friday, with the Nasdaq leading broad-based losses as selling pressure intensified throughout the session. Despite the decline, the S&P 500 remains in a longer-term uptrend, holding above its rising 50-day EMA near 7,250. However, short-term momentum has weakened after the index was rejected near record highs around 7,550–7,600, falling below its 20-day EMA while RSI slipped to 48.8. Higher trading Volume suggests profit-taking rather than a major trend Reversal, with the 7,300–7,250 area acting as key support. A move back above the 20-day EMA would strengthen the bullish outlook, while a break below the 50-day EMA could signal a deeper pullback.