U.S. Stocks Suffer a Black Friday Selloff, Semiconductors Plunge 10%, Gold and Silver Crushed

Market Overview

U.S. markets endured a sharp selloff after the May Nonfarm Payrolls report showed 172,000 jobs added, nearly double market expectations, reigniting fears of further monetary tightening. Traders quickly priced in the possibility of another Federal Reserve rate hike this year. The Nasdaq plunged 4.18%, while the Philadelphia Semiconductor Index tumbled 10% in a single session, wiping out more than $1 trillion in market capitalization.

The bond market also came under heavy pressure, with the 10-year Treasury yield rising to 4.53%. The U.S. dollar gained 0.6%, marking its strongest daily performance in two months. Against the backdrop of a stronger dollar and rising yields, gold fell 3.28%, silver plunged 8.05%, and Bitcoin dropped below $60,000. Meanwhile, geopolitical tensions resurfaced after Iran launched another attack against Israel.

■ Blowout Payrolls Trigger Technology Selloff

The U.S. economy added 172,000 jobs in May, nearly twice consensus expectations, while the unemployment rate stood at 4.3%. Following the report, traders fully priced in the possibility of a Fed rate hike before year-end.

High-valuation AI and technology stocks bore the brunt of the selloff. The S&P 500 declined 2.64%, while the Nasdaq Composite sank 4.18%. The Philadelphia Semiconductor Index plunged 10%, erasing more than $1 trillion in market value and recording its largest single-day decline in six years.

Among major technology names, NVIDIA fell 6.2%, while Intel, Micron, AMD, and Broadcom declined between 7.9% and 13.3%. Meta dropped 5.5% as crowded trades unwound aggressively across the sector.

■ Rate Hike Expectations Repriced, Bonds Hit Hard

Treasury yields surged across the curve, with the 2-year yield jumping as much as 15 basis points, the 10-year yield climbing to 4.53%, and the 30-year yield briefly moving back above 5%.

Goldman Sachs abandoned its previous easing outlook and raised the probability of a Fed rate hike from 10% to 20%, while Citigroup continues to project three rate cuts before year-end.

The U.S. Dollar Index rose 0.6%, posting its strongest daily gain in two months. The combination of higher yields and a stronger dollar created significant headwinds for risk assets globally.

■ Precious Metals Collapse as Safe-Haven Demand Fails to Materialize

Spot silver plunged 8.05% to $67.90 per ounce, while spot gold dropped 3.28% to $4,329 per ounce, erasing all of its year-to-date gains.

Despite broader risk-off sentiment, precious metals failed to attract safe-haven flows as soaring Treasury yields and a stronger dollar triggered widespread liquidation across the sector.

Bitcoin fell as much as 7%, breaking below the $60,000 level for the first time since October 2024. Ethereum dropped 11% in a single session and recorded a weekly loss exceeding 20%.

■ Geopolitical Tensions Escalate Again as Iran Attacks Israel

Iran launched another attack against Israel for the first time in two months, prompting Israeli missile interception efforts. Bahrain and Kuwait issued air defense alerts, while U.S. forces reportedly struck Iranian targets.

President Donald Trump stated that Iran had “made its point” and should return to negotiations, but tensions across the Middle East remain elevated.

Crude oil prices rose during the week but failed to stage a major breakout, reflecting continued resilience in global supply. WTI crude settled down 2.69% at $90.50 per barrel, while Brent crude declined 2%.

Outlook and Key Themes● Will Global Risk-Off Sentiment Continue？

Following Friday's market rout, risk aversion carried into Monday's Asian session. U.S. equity futures traded lower, while Japan's Nikkei Index suffered significant early-session losses.

After the semiconductor sector's 10% collapse and the destruction of over $1 trillion in market value, investors will closely monitor whether crowded AI and technology trades can stabilize. The trajectory of the VIX, which surged above 21, will also be a critical indicator of whether market sentiment can recover this week.

● Markets Reprice the Fed Outlook

The stronger-than-expected payrolls report has dramatically altered interest-rate expectations. With traders now fully pricing in the possibility of another rate hike this year, attention will shift to upcoming inflation data and comments from Federal Reserve officials.

Should hawkish expectations continue to strengthen, Treasury yields and the U.S. dollar are likely to remain elevated, maintaining pressure on growth stocks and precious metals.

Key Events to Watch

• Apple WWDC Developers Conference: Potential launch of an upgraded Siri platform

• Zhipu AI and MiniMax expected to be added to the Hang Seng Tech Index

• Japan Q1 Real GDP release

• Trip.com latest quarterly earnings report

• U.S. equity futures trade lower in Monday's Asian session; crude oil rises roughly 3% following Iran-Israel tensions

• Monitor whether global risk-off sentiment extends as rate hike expectations intensify