Nasdaq falls 4% in worst day since April 2025 as traders flee chip stocks
The Nasdaq Composite fell 4% in its worst session since April 2025 as investors dumped chip stocks on concerns about AI-related valuations and renewed rate worries from May payrolls. Nvidia, AMD and Micron led the slide as the broader index rotation accelerated.
The Nasdaq Composite fell about 4% on Friday, marking its worst single-day decline since April 2025. Investors rotated out of chip stocks as concerns mounted over aggressive AI-linked valuations and a stronger-than-expected May nonfarm payrolls print revived fears that the Federal Reserve could move to hike rates rather than cut.
Semiconductors led the selloff, with Nvidia, AMD and Micron posting double-digit losses; Micron alone slumped 13%. According to BBC's coverage, the S&P 500 closed down 2.3% and the Dow Jones Industrial Average fell more than 700 points. Bitcoin also dropped to around $60,000 the same day.
Wharton's Jeremy Siegel said a selloff like Friday's "is rarely the top" of a rally and that the correction could prove healthy. Apple's WWDC, SpaceX IPO valuation debates and the Fed's upcoming rate decision will shape the next leg of trading. This is not investment advice.
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