Nasdaq Sinks 4% as Chip Stock Selloff Hits Wall Street

Gotrade News - The Nasdaq Composite plunged 4.18% to 25,709.43 on Friday, its largest single-day drop since 2025. The S&P 500 fell 2.64% to 7,383.74, posting its first negative week in ten weeks.

A sharp semiconductor selloff drove the decline as investors trimmed crowded chip positions. Fears the Federal Reserve will stay higher-for-longer added pressure across US stocks.

Key Takeaways

• Nasdaq fell 4.18% to 25,709.43, its worst session since 2025.
• Chip stocks led losses, with Marvell down more than 16% on Friday.
• A strong May jobs report revived fears of a Federal Reserve rate hike.

The Dow Jones Industrial Average dropped 1.35%, or 695.15 points, to 50,866.78. According to Katadata, the Nasdaq lost 4.7% for the week.

Semiconductor names bore the brunt of the rout across the session. Marvell (MRVL) slid more than 16%, leading the sector lower.

Chip Stocks Lead The Rout

Broadcom (AVGO) dropped about 8% after falling 12% the prior day. Micron (MU) lost 13%, extending an 8% slide from Thursday.

Intel and AMD each declined roughly 11% as the selling broadened. The downturn followed Broadcom declining to raise its AI chip projections on June 3.

Per Katadata, strategist Mark Hackett said semiconductor positioning far exceeded long-term allocation. He described the move as profit-taking after an extended run.

The upcoming SpaceX IPO, valued at $1.77 trillion and set for June 12, prompted liquidity adjustments. Investors raised cash to prepare for the high-profile listing.

Rate Fears Spark Rotation

A strong May US jobs report stoked fears the Fed will stay higher-for-longer. Macquarie chief economist David Doyle called the data "too good," raising the odds of a hike this year.

Investors rotated into defensive sectors including healthcare, utilities, and consumer staples. As reported by Katadata, Kraft Heinz and Keurig Dr Pepper drew buying while bitcoin fell.

President Trump pushed back on the market reaction during an NBC "Meet the Press" interview. According to Bloomberg Technoz, he said there is no reason to raise rates.

Trump argued markets fall on good economic data because they fear a rate hike, which he called mistaken. His nominee Kevin Warsh is set to chair his first FOMC meeting on June 16-17.

Sources

• Wall Street Tersungkur, Nasdaq Anjlok 4% Dihantam Aksi Jual Saham Cip (Katadata)
• Wall Street Anjlok Didorong Kekhawatiran Suku Bunga Saham Teknologi (kumparanBISNIS)
• Donald Trump Lawan Sentimen Pasar Terkait Kenaikan Bunga Fed (Bloomberg Technoz)