Nasdaq Sinks 4% and Has Worst Day in a Year on AI Weakness, Rising Odds for Fed Rate Hike
Traders sharply raised December rate-hike odds after a 172,000-job gain in May, while Treasury yields climbed and tech shares led the selloff.
- On Friday, the tech-heavy Nasdaq Composite fell 4.18%, its worst day since April 2025, after a strong jobs report reduced expectations for Federal Reserve interest rate cuts.
- The Bureau of Labor Statistics reported the economy added 172,000 jobs in May, beating expectations and prompting traders to raise the probability of a December Federal Reserve rate hike to 43%, according to CME FedWatch.
- Broadcom shares fell 7.92% Friday following weaker-than-expected revenue guidance, while Meta shares dropped 5.5% amid plans to raise equity for artificial intelligence buildout.
- Wall Street's 'fear gauge,' the VIX, surged 40% to a two-month high as the 10-year Treasury yield rose to 4.54%, pressuring broader stock sentiment.
- Market sentiment shifted from 'greed' to 'fear' earlier this week, coinciding with broader asset declines as gold prices dropped more than 3.5% and bitcoin tumbled more than 5% to just above $60,000.
16 Articles
16 Articles
After Jobs Report, Stocks Post Worst Day Since October
The U.S. stock market had its worst day since October Friday as a sell-off in big technology companies weighed down the broader market and a strong jobs report boosted expectations that the Federal Reserve will be forced to hike interest rates at some point this year. The Dow fell...
The US stock market has been shaken by the cascade sales of technology shares on Friday and the end of the hopes of monetary easing of the Federal Reserve (Fed), while European markets have remained more cautious. ...
The Nasdaq index fell 4.2 percent on Friday on the prospect of higher interest rates. The biggest drop in over a year.
The good news on the labor market is terrible for investors. So it was confirmed this Friday on Wall Street where the three indices suffered severe falls, led mainly by Nasdaq (minus 4%) due to a massive sale of shares related to AI once the good results in job creation were known.Continue reading...
Coverage Details
Bias Distribution
- 50% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
