(Updates to market close)

* Semiconductors tank, set for biggest one-day drop since

last year

* S&P 500 snaps 9-week streak of Friday-to-Friday gains

* US adds 172,000 jobs in May, double analyst

expectations

By Stephen Culp and Medha Singh

NEW YORK, June 5 (Reuters) - Wall Street's nine-week

winning streak ended with a thud on Friday, as red-hot

technology stocks suffered their largest daily decline this year

after a hot May jobs report fueled fears of a hawkish policy

pivot from the U.S. Federal Reserve.

Selling was concentrated among chip stocks and other

technology favorites that have surged higher in recent weeks as

the Nasdaq Composite Index and S&P 500 rose

repeatedly to fresh highs.

All three major U.S. stock indexes closed sharply lower,

with plunging chip stocks dragging the tech-laden Nasdaq

down by its largest one-day percentage loss since last year.

The S&P 500 ended its nine-week run of Friday-to-Friday

gains, its longest weekly winning streak since one that ended in

December 2023.

"After the record run we've seen the last nine weeks in

equities, specifically tech and semiconductors, the dam just

broke today," said Ryan Detrick, chief market strategist at

Carson Group in Omaha. "Obviously, the stronger-than-expected

jobs report puts the Fed in a tough spot regarding any interest

rate cut for the rest of the year. And the market is throwing a

fit by hitting the big winners so far this year."

Rising interest rates and the Iran war weighed on sentiment

heading into the weekend, but many investors said they expected

tech stocks to continue rallying.

"The market reaction today was more driven by positioning

rather than fundamentals," said Ohsung Kwon, chief equity

strategist at Wells Fargo. "The semiconductor sector was way

overbought. That's why we're seeing the selloff. I don't think

it's the end of the semi bull market."

The U.S. economy added 172,000 jobs in May, according to the

Labor Department, more than double analyst expectations, while

the unemployment rate held firm at 4.3%. The robust report was

double-edged: it provided reassurance of U.S. economic health,

but all but killed any hopes of an interest rate cut from the

Fed in the near future.

Financial markets are pricing in a growing likelihood of a

rate hike at the conclusion of the Fed's December meeting,

according to CME's FedWatch tool.

Fading hopes for a near-term resolution to the Middle East

war and reopening the Strait of Hormuz are stirring fears that

energy price pressures could morph into wider, systemic

inflation.

Iran reaffirmed its support for Hezbollah and demanded that

Israel withdraw its troops from southern Lebanon, further

complicating efforts to secure a near-term peace deal that would

include the resumption of traffic through the crucial strait.

U.S. President Donald Trump's administration has negotiated

three truces, and while fighting has been greatly reduced, the

two sides continue to trade airstrikes.

According to preliminary data, the S&P 500 lost

199.64 points, or 2.63%, to end at 7,384.67 points, while the

Nasdaq Composite lost 1,117.38 points, or 4.16%, to

25,713.58. The Dow Jones Industrial Average fell 684.53

points, or 1.33%, to 50,877.40.

Nvidia ( NVDA ), the largest company by market value, fell

sharply, as did smaller rivals Intel ( INTC ), Micron,

AMD and Broadcom ( AVGO ).

Lululemon Athletica ( LULU ) slumped after the athletic apparel

maker cut its annual profit forecast and projected

second-quarter earnings well below Wall Street estimates.

Cooper Companies ( COO ) rose after the contact lens maker beat

estimates for second-quarter results.

Cryptocurrency firms Coinbase and Strategy

were pulled lower by bitcoin's sharp drop.

S&P Global said it would not change the eligibility requirements

for its major indices, which effectively rules out a swift entry

for Elon Musk's SpaceX to the benchmark S&P 500 after it goes

public in what would be the world's biggest initial public

offering.

S&P Dow Jones Indices will announce the results following

its rebalancing after markets close. Chipmaker Marvell

Technology, which boasts over $270 billion in

valuation, is among the contenders to be added to the benchmark

index.