US stocks slump as fears over Big Tech shake Wall Street
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- Nasdaq fell more than 4% on Friday, marking its biggest one‑day drop since April 2025.
- S&P 500 closed 2.6% lower and the Dow Jones Industrial Average slipped 1.35% as investors reacted to the strong April jobs report.
- Bitcoin dropped sharply after the market sell‑off, reflecting investors’ flight from riskier assets.
- David Doyle of head of economics at Macquarie Group, said the jobs data were “too good” and raised the likelihood of further Fed rate hikes.
- Donald Trump criticized the market reaction, saying “too much emphasis is placed on inflation” and announced a proposal for the government to acquire stakes in AI firms.
Why it matters: Investors in tech stocks lose value as the Nasdaq slides >4%, and defensive sector holdings gain as capital shifts to healthcare, utilities and consumer staples. The Fed’s likely higher‑rate stance raises borrowing costs for businesses.
