Investors trimmed tech exposure after May’s jobs report, driving the Nasdaq Composite to its steepest decline in over two months.
The Nasdaq Composite fell 4.1% on Friday, leading a broad market retreat as investors digested May’s labor market data and reduced positions in technology stocks. The decline marked the index’s sharpest single-day drop since late March, weighing on growth-oriented sectors.
Prior to the selloff, the Nasdaq had posted modest gains for the week, supported by strong earnings from select megacap tech firms. However, concerns over rising interest rates and economic uncertainty prompted a shift away from high-valuation growth stocks.
The benchmark S&P 500 and Dow Jones Industrial Average also closed lower, though losses were less pronounced than in the tech-heavy Nasdaq.