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"The 'June Curse' Strikes Again as All Three Major US Stock Indexes Close Down, Chip Index Plunges 10%, Cryptocurrencies Experience a 'Bloodbath'"BlockBeats News, June 6th. The first May non-farm payroll report from the Washington Age came in well above expectations, making a near-term rate cut highly unlikely. Market consensus has shifted to expecting a rate hike, with CME's FedWatch tool indicating a probability of over 67% for a Fed rate hike by December this year. The U.S. stock market suffered a heavy blow, led by AI and semiconductor stocks. According to data from Bitget, the U.S. 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 winning streak), and the Nasdaq down 4.18%. Notably, the S&P 500 marked its largest single-day decline since October 2025, and the Nasdaq saw its biggest single-day drop since April 2025. Most semiconductor stocks fell, with the Philadelphia Semiconductor Index plunging by 10% at the close, marking the largest single-day drop since April 2025. Nvidia fell over 6%, TSMC dropped by 6.68%, Broadcom fell by nearly 8%, and Intel dropped by over 11%.
Bonds, gold, and cryptocurrencies were not spared. The yield on the 10-year U.S. Treasury note rose by 7 basis points to 4.54%. Spot gold fell by around 3.5%, breaking below $4320 per ounce and erasing all gains for the year. In the cryptocurrency space, according to an exchange market data, Bitcoin briefly fell below $60,000, marking the first time it has dropped below this level since October 2024. It is currently trading at $61,268, with a 24-hour decline of 3.3%. Ethereum dropped below $1600, with the current price at $1593, representing a 24-hour decline of 9.46%. Over the past 24 hours, there have been liquidations totaling $1.829 billion, including $1.457 billion in long liquidations and $0.372 billion in short liquidations.
In a midterm election year, June is historically the worst-performing month for the U.S. stock market, often referred to as the traditional "June curse." Investors widely anticipate the market may soon enter a short-term consolidation phase. Furthermore, looking at historical returns, Bitcoin's performance in June has been lackluster. Since 2013, Bitcoin has, on average, seen a return of -0.14% in June, second only to September's -3.08%, making it the second-worst month of the year in terms of performance. The median return is 2.2%, weaker than most months overall.
Earlier, Bank of America warned that the current structure of the U.S. stock market bears striking similarities to the late-stage of the 2000 dot-com bubble, urging investors to be cautious of risks in the late bull market and gradually shift to defensive positioning. Data shows that while the S&P 500 hit a historic closing high on the last trading day of May, only 20 constituent stocks simultaneously refreshed their all-time highs, with the majority concentrated in AI and semiconductor-related sectors. In March 2000, at the peak of the dot-com bubble, only about 20 stocks hit new highs as well.
