Stocks tumbled Friday as a selloff that began earlier in the week over fears about the AI boom’s longevity was compounded by worries about rate hikes from the Federal Reserve.
The Nasdaq sank 4%, suffering its worst selloff since April 2025—during the height of President Donald Trump’s tariff shock. The S&P 500 lost 2.6%, and the Dow Jones Industrial Average fell 1.35%.
Chipmakers Micron Technology, Intel, Cisco and Nvidia led the charge lower, while hyperscalers like Meta, which will reportedly plow billions more into AI, as well as Amazon and Microsoft suffered more modest declines.
Trouble began when chip designer Broadcom gave disappointing guidance late Wednesday, when it reported quarterly earnings. That sparked a selloff on Thursday that got further stoked by Friday’s strong jobs report.
The Labor Department’s monthly tally showed employers added a net 172,000 jobs last month, nearly double Wall Street forecasts. Prior months were also revised sharply higher, indicating the labor market was much more resilient than previously thought in the face of higher oil prices caused by the Iran war.
