Friday’s brutal selloff wiped $1.8 trillion from the S&P 500 (SPX) as a collapse in semiconductor shares sent shockwaves across Wall Street’s major indexes.
The Nasdaq Composite fell 1,121.53 points, or 4.18%, to 25,709.43, marking its worst single session since April 2025.
The S&P 500 shed 200.57 points, or 2.64%, closing at 7,383.74, its steepest one-day decline since October 10 of last year.
The Dow Jones Industrial Average dropped 695.15 points, or 1.35%, to 50,866.78, just one day after hitting a record high.
The losses ended the S&P 500’s nine-week winning streak, delivering the benchmark index its first losing week in ten.
A stronger-than-expected May jobs report triggered the selling, with the U.S. economy adding 172,000 positions, far exceeding forecasts.
The robust labor data pushed the 10-year Treasury yield above 4.5% and the 30-year yield above 5%, stoking fears of prolonged elevated borrowing costs.
Chipmakers absorbed the heaviest damage, with the Philadelphia SE Semiconductor Index posting its largest single-day percentage drop since March 2020, erasing more than $1 trillion in market value.
Broadcom (AVGO) fell more than 7% on Friday following a double-digit decline Thursday, after the company disappointed investors by not raising its AI chip outlook.
Marvell Technology (MRVL) and Micron Technology (MU) plunged approximately 16% and 13%, respectively, while Intel (INTC) and AMD (AMD) each shed around 11%.
Meta Platforms (META) dropped 5.5% following a published report suggesting the social media company may pursue a new stock offering to fund AI infrastructure spending.
“After the record run we’ve seen the last nine weeks in equities, specifically tech and semiconductors, the dam just broke today,” said Ryan Detrick, chief market strategist at Carson Group in Omaha.
“Investors had been kind of hovering with their finger over this sell button,” said Mark Hackett, chief market strategist at Nationwide, adding that semiconductor holders needed to rebalance after two months of outsized gains.
Lululemon (LULU) slumped 8.6% after the athletic apparel retailer trimmed its revenue and profit forecasts for the year ahead.
Cryptocurrency-linked stocks also took significant hits, with Coinbase (COIN) and Strategy (MSTR) falling 7.1% and 6.9%, respectively, as bitcoin dropped 4.1% and fell below $60,000 for the first time since late 2024.
For the week, the S&P 500 declined more than 2% while the Nasdaq lost approximately 4.7%, closing out one of the worst weekly performances for growth stocks in recent memory.
