Wall Street falls sharply as strong US jobs data sparks tech selloff and revives rate concerns

New York: Wall Street's best run in three years ended unhappily on Friday, with investors taking flight from hot technology shares, safe government bonds and gold alike following a strong May jobs report that reignited fears that United States interest rates may be rising again by year end.

The Nasdaq composite dropped 4.2% on Friday in its worst single-day decline in more than a year, extending this week's investor retreat from favoured artificial intelligence and semiconductor companies. The S&P 500 dropped 2.65%, ending a nine-week string of advances in the index that was its longest since 2023, a week before SpaceX is expected to come to market with the largest-ever IPO.

Analysts and portfolio managers said the selloff wasn't shocking, given the scale of gains across the market since a March pullback driven by the war with Iran, and many indicated they expect buyers to return given the sharp rise in technology-firm earnings and the generally positive outlook for the US economy.


Even so, Friday's action came as a shock for investors who have bought into the scorching rallies of recent months.