Vanguard All-World ETF Suffers Worst Rout in Months as Jobs Data and Chip Woes Collide

Vanguard All-World ETF fell 2.41% after US jobs data dashed rate cut hopes and Broadcom's AI outlook disappointed, but fund remains up 10% YTD.

The Vanguard FTSE All-World UCITS ETF closed Friday at €160.44, shedding 2.41% in a single session — its steepest daily loss in weeks. The selloff erased a chunk of gains made just days earlier, when the fund hit a 52-week high of €165.24 on Tuesday, June 3. Over the full trading week, the ETF is down 1.72%.

The trigger was a rare confluence of two powerful headwinds. First, the US jobs report for May crushed expectations with 172,000 new positions, more than double the 80,000 consensus estimate. That dashed lingering hopes for near-term Federal Reserve rate cuts, sending the probability of a rate hike by year-end to 70% according to CME FedWatch. The yield on the ten-year US Treasury jumped over six basis points to 4.544%.

Hours earlier, chipmaker Broadcom had already rattled markets. Its quarterly revenue of $22.19 billion narrowly missed forecasts, and CEO Hock Tan left the full-year AI chip revenue target of $100 billion unchanged. More troubling was the Q3 outlook for AI sales at around $16 billion — well below the consensus of roughly $17.2 billion. Broadcom shares had already tumbled 13% on Thursday.

The double blow sent shockwaves across global equity markets. The Nasdaq Composite plunged 4.18% on Friday, the S&P 500 fell 2.64% to 7,384 — its worst single-day drop in over a year — and the SOXX semiconductor ETF lost more than 10%. The pain spread to Asia: South Korea’s KOSPI dropped over 5.5%, triggering a trading halt on the Korea Exchange, with Samsung Electronics sliding more than 7% and SK Hynix nearly 10%. In Japan, SoftBank lost over 11%.

For the Vanguard All-World ETF, the damage was amplified by its own composition. More than 62% of the fund is allocated to US equities, and its top holdings — including NVIDIA, Apple, Microsoft, Amazon, Broadcom, and Taiwan Semiconductor — are heavily weighted in tech and semiconductors. When rising interest rates push discount rates higher, richly valued growth stocks bear the brunt, and the ETF tracks them closely.

Despite the rout, the broader uptrend remains intact. The fund is still up nearly 10% year-to-date and 24.68% over the past twelve months. From its 52-week low of €127.72 set in June 2025, it has recovered more than 25%. Friday’s close remains comfortably above the 200-day moving average of €147.27. Short-term technicals also suggest a controlled pullback rather than a trend reversal: the RSI sits at 62.4, and the 30-day annualized volatility is a moderate 9.80%.

Losses were partly cushioned by the fund’s global diversification. Industrial, consumer staples, and energy names have outperformed the broad market this year, and the Dow Jones notched a fresh all-time high of 51,562 on Thursday, buoyed by healthcare and financial stocks — sectors that also carry meaningful weight in the Vanguard ETF.

Investors now eye two key events in the coming week. Oracle reports quarterly results on Tuesday, June 10, with CEO Safra Catz’s commentary on AI infrastructure demand and cloud bookings expected to recalibrate expectations for Amazon Web Services, Microsoft Azure, and Google Cloud. Then, on June 16–17, the Federal Open Market Committee meets under new Chair Kevin Warsh for the first major rate decision following the blockbuster jobs report. For the Vanguard All-World ETF, the near-term path hinges on how mega-cap tech names like NVIDIA and Broadcom react to that evolving interest-rate logic.