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(Bloomberg) — Wall Street’s historic weekly run came to a halt, with stocks hit by a tech selloff and higher bond yields as a solid jobs report added to bets the Federal Reserve’s next rate move will be a hike.
The repricing of the Fed outlook took hold as markets also reassessed the artificial-intelligence trade that had led a surge from this year’s lows. Growing anxiety about valuations sent the S&P 500 down 2.4%, with the index failing to complete a 10th straight week of gains. The Nasdaq 100 sank 4%, the most since April 2025. A gauge of chipmakers slid 9%. Meta Platforms Inc. sank 5.5% as the Financial Times said the firm is weighing a share sale.
The concerted selloff in stocks, bonds and crypto was the biggest setback in months for the latest leg of the bull market, which traces to the end of March when negotiations began in earnest to end war in Iran. Concern has grown recently about the sustainability of an AI-fueled rally that had pushed the Philadelphia Semiconductor Index toward its best quarter ever and made trillion-dollar behemoths out of chipmakers Micron Technology Inc. and Samsung Electronics Co.
The tech selloff also followed an impressive earnings season for AI companies, with investors questioning whether growth rates have peaked, according to Mark Hackett at Nationwide.
