Nasdaq posts biggest drop since April 2025 as chip stocks sink
Why it matters: A stronger-than-expected May jobs report pushed traders to price in a 42.7% chance of a Fed rate hike by December.
Wall Street closed sharply lower Friday, with semiconductor shares leading a broad tech sell-off after a hot US jobs report darkened the outlook for near-term Federal Reserve easing. The Nasdaq Composite suffered its largest one-day percentage loss since April 2025, while the Philadelphia SE Semiconductor Index logged its steepest daily drop since March 2020, wiping out more than $1 trillion in market value. The Labor Department reported the US added 172,000 jobs in May and unemployment held at 4.3%. The S&P 500 also ended a nine-week winning streak. Investors were also weighing higher rates and war-related risks in the Middle East heading into the weekend.