NFP Selloff Hit Nasdaq -4.77%. Our Composites Gained. Here Is the Data.

Friday 6 June 2026. Non-Farm Payrolls came in hot. Rate cut expectations collapsed. The Nasdaq 100 shed 4.77% in a single session. Russell 2000 dropped 3.47%. The S&P 500 lost 2.64%.

Meanwhile, two of our analysis indices finished the day in the green. Not flat. Not “less bad”. Actually positive. Prosper Select gained 1.87%. Convergence gained 0.87%. The ethical-trading/” style=”color:#D8AF44;text-decoration:underline” title=”Ethical Trading”>Ethical 500 lost just 0.22% — roughly one-twelfth the damage the S&P took.

This is the data from a real selloff, not a backtest. It deserves a closer look.

June’s NFP print was hotter than any consensus range. More jobs means a stronger economy — which sounds positive until you remember the market had priced in two rate cuts by autumn. That expectation died on Friday morning.

Rate-sensitive growth names were hit hardest. Broadcom dropped 11.7% in after-hours trading Thursday, setting the tone before the opening bell. High-duration stocks — the ones whose valuations rely on future earnings discounted at low rates — repriced sharply.

This is a textbook rate-shock pattern. Expensive growth leads the decline. Defensive quality holds. The question is whether your portfolio construction naturally steers toward one side or the other.

Since-inception returns measured from analysis launch date. Nasdaq and S&P measured over the same period via QQQ and SPY respectively.

This result was not luck. It is a direct consequence of how the composites are constructed.

Every company in the Ethical 500 universe passes a multi-factor screen that covers ethical compliance, valuation, quality, and balance sheet strength. The index does not cap-weight toward a handful of mega-cap growth names the way the S&P 500 does. That single structural difference explains most of the 2.42 percentage-point gap on Friday.

The Convergence analysis goes further. It requires alignment across all seven screening layers — ethical, valuation, quality, momentum, insider activity, institutional positioning, and earnings consistency. A company that passes all seven gates tends to have strong cash flow, reasonable multiples, and management buying their own stock. Those are exactly the characteristics that hold up when rate expectations shift.

The Prosper Select takes the top 25 names from the Convergence universe, ranked by analysis conviction score. It is the most concentrated, most heavily screened list we publish. On Friday, that concentration worked in its favour. The 25 names with the strongest fundamentals didn’t just survive — they attracted capital as traders rotated out of rate-sensitive growth.

Tech 100 tracked the Nasdaq closely, which is expected. It is a tech-focused analysis. Its job is to give ethical exposure to the technology sector, not to avoid tech drawdowns. Even so, it shed 2.57% against the Nasdaq’s 4.77% — roughly half the damage — because the screening still filtered out the most speculative names in the sector.

The pattern is simple: the more layers of screening, the better the downside protection. Prosper Select (7 layers, top 25) gained. Convergence (7 layers, full universe) gained. TE500 (broad screen) barely moved. Tech 100 (sector-concentrated) declined but still outperformed its benchmark by nearly half.

Selloffs like Friday’s are the reason analysis construction matters. Anyone can build an index that tracks the market in a bull run. The test is what happens when a macro shock hits and the market separates quality from speculation in a single session.

If your equity allocation is market-cap weighted in the S&P 500, roughly 30% of your exposure sits in seven stocks. When rate expectations shift, those seven names move first and move hardest. The diversification you thought you had turns out to be concentration in disguise.

Multi-factor composites solve this by anchoring to fundamentals rather than market capitalisation. They won’t always outperform in a momentum-driven rally — but they won’t give back weeks of gains in a single afternoon either.

Friday was one session. But the since-inception numbers tell the same story over a longer horizon. Convergence at +118.6% and Prosper Select at +101.3% have both roughly doubled the S&P 500’s +45.1% return over the same period. The composites are not just defensive — they are compounding faster and protecting better.

I want to be clear: one good day in a selloff is data, not destiny. Markets can punish quality and reward speculation for months at a time. Friday’s result is evidence that the screening methodology works as intended under stress — not a guarantee it always will.

But evidence compounds. When your broad universe loses one-twelfth of the benchmark, your full-screen analysis gains while the market drops nearly 5%, and your concentrated list leads the day — that is the screening doing its job. Not once. Not in theory. On a day when the NFP print caught the entire market leaning the wrong way.

The composites are updated regularly and published with full transparency. If you want to see how they are constructed, the methodology pages are below.

This article presents historical performance data for educational purposes. Past performance does not guarantee future results. Analysis indices are model portfolios and do not represent actual traded accounts. All data as of market close, 6 June 2026.