Nasdaq drops 4% as Fed rate‑hike fears hit chip stocks
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- Nasdaq fell 4% on Friday, its steepest drop since April 2025.
- Broadcom issued disappointing earnings guidance on Wednesday, sparking a selloff that dragged down other chip makers.
- Micron Technology fell, along with peers Intel, Cisco, and Nvidia, leading the decline among semiconductor stocks.
- Meta and other hyperscalers such as Amazon and Microsoft posted modest losses.
- U.S. Labor Department reported a net increase of 172,000 jobs, nearly double forecasts, fueling expectations of tighter Fed policy.
- 10‑year Treasury yield rose 5.5 basis points to 4.532% even as oil prices fell.
Why it matters: Investors in tech and semiconductor stocks bear the brunt, as the Nasdaq selloff erases recent gains, while a stronger labor market and higher Treasury yields signal a tighter Federal Reserve stance that could keep borrowing costs elevated, pressuring corporate earnings and dampening consumer spending.
