"The 'June Curse' Strikes Again as U.S. Stock Market's Three Major Indexes All Close Down, Chip Index Plunges 10%, Cryptocurrency Experiences 'Bloodbath'"
BlockBeats News, June 6th. The first non-farm payroll report of the "Wash Era" far exceeded expectations, making an imminent rate cut highly unlikely. Market consensus has shifted towards a rate hike, with CME's "FedWatch" data indicating a probability of over 67% for a Fed rate hike by December this year. The US stock market experienced a sharp decline, with AI and semiconductor stocks leading the plunge. According to Bitget data, the US stock market closed on Friday with the Dow Jones Industrial Average down 1.35%, the S&P 500 down 2.65% (ending a 9-week rising streak), and the Nasdaq down 4.18%. Notably, the S&P 500 saw its largest single-day drop since October 2025, and the Nasdaq experienced its biggest daily decline since April 2025. Most semiconductor stocks fell, with the Philadelphia Semiconductor Index plummeting 10% by the closing bell, marking the largest one-day drop since April 2025. NVIDIA fell over 6%, TSMC fell 6.68%, Broadcom dropped nearly 8%, and Intel plunged over 11%.
Bonds, gold, and cryptocurrencies were not spared from the sell-off, as the 10-year Treasury yield rose by 7 basis points to 4.54%. Spot gold fell by approximately 3.5%, breaking below $4320 per ounce, erasing all its gains for the year. In the cryptocurrency market, according to HTX market data, Bitcoin briefly dropped below $60,000 for the first time since October 2024. It is currently trading at $61,268, representing a 3.3% decrease over the past 24 hours. Ethereum fell below $1600 to its current price of $1593, marking a 9.46% drop in the last 24 hours. Over the past 24 hours, there has been a total of $1.829 billion in liquidated positions, including $1.457 billion in long liquidations and $0.372 billion in short liquidations.
In a midterm election year, June is historically known as the worst-performing month for US stocks, often referred to as the traditional "June Curse." Investors widely anticipate a period of short-term consolidation in the market. Moreover, looking at historical returns, Bitcoin has shown poor performance in the month of June. Since 2013, Bitcoin has experienced an average negative return of -0.14% in June, second only to September's -3.08% return, making it the second-worst month of the year.
Earlier, Bank of America warned that the current structure of the US stock market bears striking similarities to the late-stage of the 2000 dot-com bubble, urging investors to be cautious of late-cycle risks and gradually shift towards defensive positioning. Data indicates that while the S&P 500 reached a new all-time high on the last trading day of May, only 20 constituent stocks hit new highs, mostly concentrated in the artificial intelligence and semiconductor sectors. In March 2000, at the peak of the dot-com bubble, only about 20 stocks hit new highs as well.
