Nasdaq Tumbles Over 4% as Strong Jobs Data Fuels Rate-Hike Fears

US stocks fell sharply on Friday (Saturday in Manila), with technology shares leading losses after a stronger-than-expected jobs report raised concerns about future monetary tightening, Amalya Dubrovsky and Brett LoGiurato reported for Yahoo Finance.

US tech shares led a broad market sell-off.

The Dow Jones Industrial Average fell about 1.3%, the S&P 500 declined 2.6%, and the Nasdaq Composite dropped more than 4.1%, weighed down heavily by semiconductor and tech stocks, including a notable decline in Nvidia shares (-6%).

The US labor market added approximately 172,000 jobs in May, significantly above expectations of around 88,000, while unemployment remained steady at 4.3%.

The stronger data reinforced expectations that the Federal Reserve may maintain higher interest rates for longer. Market sentiment shifted toward risk aversion, with investors rotating out of growth and tech stocks.