Wall Street’s longest winning streak in three years came to an abrupt end as investors abandoned high-flying technology shares in dramatic fashion.
A stronger-than-expected May jobs report reignited fears that U.S. interest rates could rise again before the end of the year, rattling equity markets broadly.
The Nasdaq composite suffered its worst single-day decline in more than a year, tumbling 4.2% as selling pressure swept through AI and semiconductor names.
The S&P 500 fell 2.65%, snapping a nine-week string of advances that had been its longest consecutive weekly run since 2023.
The sell-off was triggered in part by a sharp drop in Broadcom (AVGO), which slid more than 12% after reporting a fiscal second-quarter revenue miss that spooked investors with AI exposure.
The Broadcom decline prompted a broader repricing of stocks tied to artificial intelligence, accelerating a rotation that had already been building beneath the surface.
Consumer staples emerged as one of the clearest beneficiaries of the flight from tech, with the sector rising 2% as investors sought shelter in reliable, dividend-paying names.
Colgate-Palmolive (CL), Coca-Cola (KO), and Procter & Gamble (PG) each jumped more than 3%, signaling strong demand for defensive positioning among institutional and retail investors alike.
Healthcare also attracted significant inflows, advancing 1.7% on the session, with Insulet (PODD) trading nearly 5% higher and Eli Lilly (LLY) gaining almost 3%.
UnitedHealth (UNH) led the Dow Jones Industrial Average higher with a gain of more than 5%, underscoring the appeal of large-cap healthcare names during periods of market stress.
JPMorgan Chase (JPM) climbed 3% as financial stocks also found buyers, with investors viewing the sector as a potential beneficiary if interest rates do move higher later in the year.
Walmart (WMT) rose nearly 1% while Costco (COST) gained around 1%, reinforcing the narrative that consumer-facing defensive names were drawing fresh capital from rotation trades.
Eli Lilly (LLY) added more than 4% in separate session trading, cementing its status as one of the market’s most sought-after non-tech growth alternatives heading into the second half of 2026.
