Market snapshot: tech stocks take a hiding
America’s Nasdaq index suffered its biggest daily fall of the year last week, and sentiment has suffered elsewhere. ii’s head of markets explains what’s happening.
8th June 2026 08:35
by Richard Hunter from interactive investor
An ugly collision of the forces which have propelled markets so far this year – technology, economics and geopolitics – sent investors on a selling spree which resulted in a sharp sell off across global markets.
- Our Services: SIPP Account | Stocks & Shares ISA | See all Investment Accounts
The US led the way downwards on Friday. In a classic example of good news being bad news, the non-farm payrolls report revealed that 172,000 jobs had been added in May, more than double the 85,000 expected. This may be positive for the economy as it shows both resilience and growth, but with underlying inflation an increasing concern given the rise of energy prices due to the conflict in the Middle East, the pressure will be mounting on the Federal Reserve to increase interest rates as it seeks to follow its dual mandate.
Indeed, the market is now pricing in a 70% probability of a rate hike before the end of the year, a far cry from the cuts which had been widely expected just a few months previously, and comfortably above the 45% likelihood which was in place just last week.
- Insider: FTSE 250 pair present buying opportunity
- Tech Focus: Alphabet, Anthropic, Nvidia, Marvell, Oracle
- Week Ahead: WH Smith, Halma, Wizz Air
In turn, growth stocks came into the firing line on the prospect of higher rates, of which tech stocks are the main proponents. The rotation was evident with some strength in defensive stocks, while there is also some speculation that investors are freeing up funds in order to participate in upcoming blockbuster IPOs. In any event, the selling pressure was most keenly felt in the Nasdaq index, which fell by more than 4% in its worst day since last year’s tariff tantrums.
The iShares Semiconductor exchange-traded fund fell by 10%, while there were declines of 8% and 16% for Broadcom Inc (NASDAQ:AVGO) and Marvell Technology Inc (NASDAQ:MRVL) respectively. Intel Corp (NASDAQ:INTC) and Advanced Micro Devices Inc (NASDAQ:AMD) each fell by around 11%, while Micron Technology Inc (NASDAQ:MU) plunged a further 13% after a decline of 8% on Thursday. Nor did the poster child escape unscathed, with NVIDIA Corp (NASDAQ:NVDA) seeing a decline of more than 6%, reducing its performance this year to an 8% gain.
- Share Sleuth: the firm I’ve bought again despite a pricey valuation
- Stockwatch: a blue-chip with long-term recovery potential
- Three advantages retail investors have over the professionals
The inevitable pressure on Asian markets, which saw circuit breakers being triggered in South Korea as the index fell by more than 8% at the open, was exacerbated by news that Israel had launched airstrikes on Iran, despite earlier calls for restraint from the US President. Oil prices rose by more than 4% as a result, further underlying the inflationary pressures which much of the world will be facing in the coming months.
Indeed, there will be further signs of this impact later in the week with the release of the both the Consumer Price Index and the Producer Price Index later in the week. The resultant outputs could well keep volatility levels high, particularly set against the relatively parlous backdrop which investors are facing. It could also further reduce what has been a positive performance so far this year for the main indices, whereby the Dow Jones, S&P500 and Nasdaq remain ahead by 5.8%, 7.9% and 10.6% respectively.
- Don’t write off UK stocks: two undervalued FTSE 100 shares
- How much do you need to secure a comfortable retirement?
- Sign up to our free newsletter for investment ideas, latest news and award-winning analysis
Despite its defensive characteristics, the FTSE100 could not escape the clutches of the sellers. Despite minor gains for market heavyweights BP (LSE:BP.) and Shell (LSE:SHEL) as they tracked the oil price higher, the overwhelming sense of a risk-off approach prevailed. The miners dipped as a result, with additional pressure falling on the likes of Endeavour Mining (LSE:EDV) and Fresnillo (LSE:FRES) following another downward lurch in the gold price.
Polar Capital Technology Ord (LSE:PCT) topped the loser board given its eponymous exposure, while International Consolidated Airlines Group SA (LSE:IAG) came under renewed pressure given the rise in the oil price. For the index as a whole, which has undergone a dreary few days in the absence of any immediate or obvious positive catalysts, a gain of 4% so far this year is of some solace to investors, even if the premier index is now languishing some 5.5% below the record high set in February.
These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.