The U.S. stock market had its worst day since October as a sell-off in big technology companies dragged down the broader market. A surprisingly strong jobs report has boosted expectations that the Federal Reserve may be forced to hike interest rates later this year.
Market Performance
- The Dow Jones Industrial Average fell 695.15 points (1.3%) to 50,866.78, ending the week down 0.3%.
- The S&P 500 dropped 200.57 points (2.6%) to 7,383.74, losing 2.6% for the week.
- The Nasdaq Composite plunged 1,121.53 points (4.2%) to 25,709.43, a weekly decline of 4.7%.
Big Tech Takes a Hit
Tech stocks that had powered the S&P 500 to record highs in recent months saw significant losses:
- Nvidia fell 6.2%
- Broadcom dropped 7.9%
- Micron Technology slid 13.3%, the biggest loss in the S&P 500
- Meta shares fell 5.5% following reports of a potential new stock offering to fund AI infrastructure spending
While stocks in the S&P 500 were nearly evenly split between gainers and losers, the outsize influence of high-valued tech stocks weighed heavily on the overall market.
Oil Prices and Inflation Concerns
- Brent crude fell 2% to settle at $93.09 per barrel, down from about $70 before the war.
- Rising oil prices have pushed up gasoline costs, fueling broader inflation.
- The Fed's preferred inflation measure showed prices rose 3.8% in April, the biggest increase in two years.
This combination of strong employment data and rising inflation has reignited fears of tighter monetary policy, causing investors to reassess their positions, particularly in the tech sector.
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