Jobs Report: Can the Labor Market Hold Up? 06/11/2026
Market Wrap
Wall Street suffered its sharpest selloff in more than a year Thursday as fears of tighter oversight of artificial intelligence infrastructure following the Democratic midterm sweep triggered heavy selling across technology and semiconductor shares.
The S&P 500 plunged 4.36% to 7,353.73, its worst session since April 2025. The Nasdaq Composite sank 5.52% to 24,315.00, while the Dow Jones Industrial Average shed 1,833.06 points, or 3.44%, to 51,523.06. The Russell 2000 fell roughly 4.45%.
The decline erased Wednesday's post-election relief rally. Investors reassessed whether a Democratic-controlled Congress could impose tougher restrictions on data-center construction and energy-intensive AI projects, threatening future demand for advanced chips.
Semiconductors led the rout. Nvidia (NVDA) dropped about 9.3%, Broadcom (AVGO) lost roughly 10.4%, and Micron (MU) tumbled around 17.5%. Selling spread beyond AI hardware into cloud, software and other sectors as investors reduced exposure.
The S&P 500 lost an estimated $2.9 trillion in market capitalization, while the Nasdaq shed approximately $2.5 trillion, according to Dow Jones Market Data. Forced selling and margin calls amplified losses as leveraged investors scrambled to cut risk.
Market volatility surged, with the Cboe Volatility Index (VIX) jumping nearly 70%. The breadth of the selloff highlighted how heavily major indexes depend on a narrow group of AI-linked companies and how quickly sentiment can reverse.
The election outcome remains a key driver, but investors are also watching rising geopolitical risks, bond yields and the Federal Reserve's next moves. Whether AI investment translates into sustainable profits is increasingly central to market direction.
Friday's attention shifts to the October U.S. employment report at 8:30 a.m. ET, including nonfarm payrolls, unemployment and wage growth. Moderna (MRNA), Humana (HUM), Vistra (VST) and Charter Communications (CHTR) are among the companies scheduled to report before the opening bell.
AI Selloff Wipes $2.9 Trillion From S&P 500
A violent reversal in the artificial intelligence trade erased an estimated $2.9 trillion from the S&P 500's market value Thursday, according to Dow Jones Market Data, as investors reconsidered the outlook for data-center investment following the midterm elections.
The PHLX Semiconductor Index plunged about 12.3%, its steepest drop since March 2020. The S&P 500 technology sector lost 7.3%, while the Nasdaq-100 fell 6.4%, showing how quickly selling spread through AI-related companies.
The initial trigger was concern that a Democratic Congress could slow or restrict new data-center development. Chipmakers bore the brunt of the selling, but the downturn soon engulfed cloud providers and other technology companies tied to AI spending.
Selling intensified as falling prices generated margin calls and forced deleveraging. Leveraged investors and hedge funds were compelled to liquidate positions, pushing losses into sectors that had previously held up better during the technology retreat.
The Nasdaq Composite alone lost an estimated $2.5 trillion in market value. Analysts warned that hedge funds caught on both sides of crowded AI trades faced especially difficult conditions, accelerating the scramble to reduce exposure.
The collapse also raised technical concerns. The semiconductor index broke below a trend line that had supported its recovery since April 2025, increasing doubts about the resilience of the broader AI rally.
With the VIX surging almost 70%, investors are watching for additional forced selling and signs of stabilization. Friday's U.S. jobs report could provide the next major test for sentiment, interest-rate expectations and risk appetite.
Stocks on the Move
- Airbnb (ABNB): Shares jumped 11% after third-quarter earnings of $3.16 per share beat the $2.85 consensus, while revenue of $4.87 billion exceeded expectations of $4.75 billion.
- Atlassian (TEAM): Shares dropped more than 15% after the company projected data-center revenue growth would slow by approximately 14% in its fiscal second quarter and 16% for the fiscal year ending next June.
- Iren (IREN): Shares gained 6% in extended trading after fiscal first-quarter revenue rose to $228 million from $137 million in the previous quarter. However, more than $4 billion in projected annual recurring revenue was delayed until at least January 2027. The stock has fallen 31% over the past week.
- Affirm Holdings (AFRM): Shares tumbled 11% after second-quarter revenue guidance of $1.435 billion–$1.465 billion only narrowly exceeded analysts' $1.43 billion estimate.
- Wynn Resorts (WYNN): Shares fell 1% after third-quarter adjusted earnings of $0.33 per share and revenue of $1.69 billion missed expectations of $0.68 and $1.75 billion, respectively.
- Akamai Technologies (AKAM): Shares slipped 1% after fourth-quarter guidance of $1.50–$1.70 in adjusted earnings per share and $1.145 billion–$1.17 billion in revenue fell short of analysts' estimates of $1.78 and $1.20 billion.
- Cloudflare (NET): Shares surged 14% after forecasting adjusted quarterly earnings of $0.43 per share on revenue of $845 million–$846 million, above estimates of $0.38 and $798 million. Third-quarter results also beat expectations.
Watchlist: ABNB, CRWV, SNDK, AMD, TSLA, SPCX, IREN, AKAM, NET, TEAM, MRNA, HUM, SKHY, OKLO, WULF, AAPL
Key Economic Events Today
Economic Data (ET)
- 08:30 AM — USD Nonfarm Payrolls, Unemployment Rate, Average Hourly Earnings
- 10:00 AM — USD Consumer Sentiment, Inflation Expectations
- 12:15 PM — USD FOMC Member Bowman Speaks
Earnings
Before Market Open: Moderna (MRNA), Humana (HUM), Vistra (VST), Charter Communications (CHTR), Enbridge (ENB), Brookfield Asset Management (BAM), PPL (PPL), Oklo (OKLO), TeraWulf (WULF)
After Market Close: No major confirmed reports
