US stocks fell on Friday amid a sharp sell-off in chip stocks.
The technology-oriented Nasdaq Composite lost 4%, its biggest drop since the customs turmoil at the start of 2025.
The trigger for a turnaround in the chip market this week was not entirely clear. Partial disappointment with the results of Broadcom, which did not improve its forecast for AI chips on Wednesday night, caused the market to fall already on Thursday. However, Friday’s selloff reached even greater intensity. A sharp rise in government bond yields, following a much better-than-expected May employment report, added to the pressure.
The Nasdaq fell 4.18% to close at 25,709.43, its biggest drop since April 2025. The S&P 500 lost 2.64% to end at 7,383.74, while the Dow Jones Industrial Average lost 695.15 points, or 1.35%, to close at 50,866.78. This index of leading companies was at a record level the day before.
On a weekly basis, the S&P 500 recorded a drop of more than 2%, its first negative result in ten weeks. The Nasdaq Composite fell 4.7%, while the Dow posted a milder decline.
The iShares Semiconductor ETF sank 10%, marking its worst day since March 2020. Broadcom shares fell nearly 8%, after already losing more than 12% on Thursday. Marvell Technology fell more than 16%, while Intel and Advanced Micro Devices weakened by about 11%, reports SEEbiz.
Micron Technology, a maker of memory chips that until recently was one of the stars of the market, fell 13% after an additional 8% drop the day before.
“Investors have had their finger on the sell button for some time,” said Mark Hackett, chief market strategist at Nationwide. “They don’t necessarily go out of the market, but if you’ve held these semiconductor stocks for the past two months, you’ve probably already made a significant return. At some point, it’s time to take profits.”
In a further sign of increased speculation in the market, bitcoin fell below $60,000 for the first time since late 2024.
