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United States·Trade & Economy·Technology

US stocks hit record highs on AI frenzy before sharp sell-off on jobs data

Saturday, 6 June 2026, 06:37 · 1 min read

US stock markets have repeatedly reached all-time highs this year, driven largely by surging investment in artificial intelligence, even as broader economic concerns — including the ongoing Iran war, rising inflation, and growing government debt — cast a shadow over the rally. However, the nine-week winning streak on Wall Street came to an abrupt end on Friday, when stronger-than-expected US jobs data — 172,000 positions added in May, more than double analyst forecasts — crushed hopes of near-term interest rate cuts by the Federal Reserve (the US central bank), prompting fears of a potential rate hike instead. Technology and semiconductor stocks bore the brunt of the sell-off, with the Nasdaq Composite falling over 4% in a single session, its steepest daily drop in more than a year, though some analysts cautioned the pullback reflected over-positioning rather than a fundamental shift in the AI-driven bull market.

Sources
BBC WorldIs there an AI stock market bubble, and is it ready to burst? ↗︎DawnWall Street ends sharply lower as chips slide, jobs data fuels rate hike fears ↗︎
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