Nasdaq drops, S&P 500 falls on jobs data, chip sell-off

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1–2 minutes

Summary

U.S. stocks fell Friday as stronger-than-expected jobs data lifted rate-hike bets and chip stocks extended losses.

Why this matters

The market move showed how economic data and Federal Reserve expectations can quickly shift stock prices, especially in technology shares. It also underscored how geopolitical uncertainty can add pressure to already volatile markets.

U.S. stocks fell sharply Friday, led by losses in technology shares after the May jobs report came in stronger than expected and a sell-off in chipmakers continued.

The Dow Jones Industrial Average fell 1%. The S&P 500 dropped 2.2%, and the Nasdaq Composite declined more than 3.8%. Nvidia shares fell 6%.

The report increased expectations that the Federal Reserve could raise interest rates later this year as the labor market stabilizes amid high inflation. Traders are now fully pricing in a rate hike by year-end, even as President Trump continues to call for cuts and Kevin Warsh, Trump’s appointee to chair the Fed, takes the helm.

Chip stocks extended recent losses after Broadcom earnings earlier this week weighed on the artificial intelligence trade. Broadcom shares continued to fall Friday. Nvidia dropped more than 4%, while Micron, Advanced Micro Devices, and Intel each lost more than 8%.

The S&P 500 was also at risk of ending a weekly winning streak. The index had been on pace for a 10th straight week of gains, which would have been its longest such run since 1985.

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