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🇸🇪 Sweden /Economy & Trade

US stocks tumble, tech shares lead the fall

From Svenska Dagbladet · () Swedish

Translated from Swedish, summarized and contextualized by DistantNews.

At a glance

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  • US stock markets, particularly tech stocks, experienced a significant drop on Friday.
  • The decline was driven by nervousness over the Federal Reserve potentially keeping interest rates high or even raising them due to stronger-than-expected US jobs data.
  • The Nasdaq Composite Index fell over 4 percent, with major tech companies like Nvidia leading the losses.

US stock markets plunged on Friday, with technology stocks bearing the brunt of the sell-off. The Nasdaq Composite Index dropped more than 4 percent, as investors grew anxious about the Federal Reserve's monetary policy. Major tech companies, including Nvidia, Intel, and AMD, saw significant declines.

The market's nervousness stems from stronger-than-expected US jobs data for May. This robust hiring suggests a potentially overheating labor market, which could fuel inflation. Investors fear that the Fed might respond by maintaining its current benchmark interest rate or even implementing further hikes in 2026 to curb inflationary pressures.

Other major indices, such as the Dow Jones Industrial Average and the S&P 500, also registered losses during Friday's trading session, reflecting a broader market sentiment of caution and uncertainty. The tech-heavy Nasdaq's sharp fall indicates a particular sensitivity among growth-oriented technology companies to interest rate expectations.

DistantNews Editorial

Originally published by Svenska Dagbladet in Swedish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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