05.06.202620:00:46UTC+00Tech Rout Drags US Stocks Sharply Lower

US stocks tumbled on Friday as a sharp selloff in semiconductor shares roiled markets. The Nasdaq Composite dropped more than 4%, its worst single-day performance since April 2025, while the S&P 500 slid 2.6%. The Dow Jones Industrial Average fell 1.4% after having notched a record high just a day earlier.

Chipmakers led the decline. Broadcom sank more than 7% following a double-digit loss on Thursday. Marvell Technology and Micron Technology each slumped about 12% and 11%, respectively, while Intel and AMD shed more than 9% and 10%.

The tech weakness followed stronger-than-expected labor market data showing the US economy added 172,000 jobs in May, far surpassing forecasts. The report pushed Treasury yields higher, with the 10-year yield climbing above 4.5% and the 30-year yield rising above 5%. The move in yields reignited worries that persistently elevated borrowing costs could dampen economic growth and curb investment.

For the week, the S&P 500 fell more than 2%, while the Nasdaq lost roughly 4%.