Wall Street Plunges in Worst Session Over a Year Amid Chip Sell-Off and Rate Hike Fears

Wall Street experienced a dramatic downturn on Friday, ending a nine-week streak of gains as investors shed technology stocks. The Nasdaq Composite plunged 4.18%, its steepest daily drop since April 2025. This sell-off concentrated on chipmakers and other tech darlings that had driven recent market records.

The Philadelphia SE Semiconductor index suffered its largest one-day percentage decline since March 2020, wiping out over $1 trillion in market value. The S&P 500 fell 2.64%, the Dow Jones Industrial Average dropped 1.35%, and the Nasdaq Composite tumbled 4.18%. Major chip stocks saw significant losses: Nvidia shed 6.2%, while Intel, Micron, AMD, and Broadcom fell between 7.9% and 13.3%.

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After a record nine-week rally, especially in tech and semiconductors, the dam simply broke today.

Adding to market jitters were robust US jobs figures. The economy added 172,000 non-farm jobs in May, significantly exceeding economists' forecasts of 85,000. This data suggests the US labor market is gaining momentum, providing the Federal Reserve with a reason to maintain interest rates amid rising inflation. The Fed is scheduled to announce its interest rate decision on June 17.

"After a record nine-week rally, especially in tech and semiconductors, the dam simply broke today," commented Ryan Detrick, chief market strategist at Carson Group. "Obviously, a stronger-than-expected jobs report puts the Fed in a tough spot regarding any rate cuts this year. The market is reacting furiously, hitting the biggest winners of the year so far."

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Obviously, a stronger-than-expected jobs report puts the Fed in a tough spot regarding any rate cuts this year. The market is reacting furiously, hitting the biggest winners of the year so far.