# S&P 500 drops 2.64% to 7,383 on Broadcom miss and strong jobs report

**Published:** 2026-07-01T23:28:32.407Z  
**Topic:** S P 500  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/f57d0150-c98c-4225-b38b-4f07a46db00f

S&P 500 fell 2.64% to 7,383.74 on June 5 2026 after Broadcom’s AI chip earnings miss and a 172,000‑job payroll surprise, sparking a broad market selloff.

The S&P 500 closed at 7,383.74 on June 5 2026, a 2.64% (200.57‑point) plunge that marked its steepest one‑day decline since early 2025, driven by Broadcom’s AI‑chip earnings shortfall and a May payroll report that added 172,000 jobs—more than double expectations.

| At a glance | |
|---|---|
| Index close | 7,383.74 |
| Daily change | –2.64% (–200.57 points) |
| Prior close | 7,584.31 |
| 52‑week high | 7,620.90 |

## Broadcom earnings and AI chip disappointment  
Broadcom reported fiscal Q2 revenue of $22.19 billion, missing the $22.27 billion consensus by $80 million, a gap that was modest in absolute terms but critical for AI‑infrastructure investors [2]. The miss triggered a selloff across semiconductor and technology stocks, amplified by the index’s 34.3% weighting in information technology [2]. The decline was not isolated; the S&P 500 opened at 7,537.36, briefly touched a high of 7,541.81 before sliding to a low of 7,368.63, underscoring the breadth of the downturn.

## Strong jobs data and rate‑cut hopes evaporate  
The May non‑farm payrolls report added 172,000 jobs, far exceeding the 80,000‑job consensus—more than double the forecast [2]. The surprise bolstered expectations that the Federal Reserve would keep rates higher for longer, dampening hopes for near‑term cuts and raising the specter of further hikes. The combination of robust employment numbers and the Broadcom shock created a “toxic” catalyst mix that erased billions in market value in a single session.

## Index composition and market context  
The S&P 500, launched in 1957 and comprising roughly 503 constituents with a total market cap of about $61.1 trillion as of Dec 31 2025, represents roughly 80% of U.S. equity market capitalization [2]. Its 34.3% tilt toward information technology made the index especially vulnerable to the semiconductor‑driven selloff on June 5. The 2.64% drop was the largest since the tariff‑driven turbulence of early 2025, and the close was well below the 52‑week high of 7,620.90 reached earlier in the year [2].

## What to watch
- Upcoming Federal Reserve policy meeting (July 2026) for clues on rate trajectory.  
- Next major semiconductor earnings season, starting with Nvidia’s Q2 report, to gauge AI‑chip demand.  
- The June 12 2026 consumer price index release, which could further influence expectations for monetary tightening.

The sharp decline highlights how a modest earnings miss in a heavyweight chipmaker can reverberate through a market heavily weighted toward technology, especially when paired with macro data that reshapes rate‑cut expectations. Whether the index can recover will hinge on the Fed’s policy path and the health of the AI‑chip sector.

## Sources
1. Investopedia — [How to Start Investing in the S&P 500 Today](https://www.investopedia.com/ask/answers/how-can-i-buy-sp-500-fund/)
2. BBN Times — [S&P 500: Index Plunges 2.64% to 7,383 in Worst Day in Over a Year as Broadcom Shock Meets Searing Jobs Data](https://www.bbntimes.com/companies/s-p-500-index-plunges-2-64-to-7-383-in-worst-day-in-over-a-year-as-broadcom-shock-meets-searing-jobs-data)

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Cite as: TrendWatcher, "S&P 500 drops 2.64% to 7,383 on Broadcom miss and strong jobs report", https://www.trendwatcher.in/article/f57d0150-c98c-4225-b38b-4f07a46db00f