May payrolls surged to 172,000, nearly doubling forecasts, triggering a sharp rise in two-year Treasury yields and hitting clean energy stocks.
The Invesco WilderHill Clean Energy ETF (PBW) dropped 11% on June 5, 2026, after May nonfarm payrolls printed at 172,000, far above the 80,000 consensus. The surprise sent the two-year Treasury yield to 4.16%, its highest level in 16 months, pressuring long-duration equities like ENPH and FSLR, which fell 18% and 11%, respectively.
PBW, up 34% year-to-date, remains 47% below its 2021 peak, with drawdowns historically tied to rising long-term rates. The 10-year Treasury yield held at 4.47%, near the 93rd percentile of its 12-month range, while the 10Y/2Y spread compressed to 0.38% from 0.74% in early February.
A $10,000 investment in PBW at Thursday’s close was worth ~$8,920 by Friday, with losses driven by macro conditions rather than company-specific factors. The ETF closed near $41 after opening around $46.