A 10% drop in the SOX semiconductor index and rising Fed rate-hike bets weigh on tech stocks worldwide after strong jobs data.
Global tech stocks retreated sharply as the SOX semiconductor index plunged 10% on Friday, led by Broadcom’s 20% two-day decline. The Nasdaq fell 4% ahead of the weekend, extending losses into Monday’s session as tech-heavy Asian markets and Europe’s STOXX 600 slid to two-week lows.
The selloff followed Broadcom’s earnings disappointment and the end of the S&P 500’s nine-week winning streak. Friday’s robust May payrolls report fueled expectations of Federal Reserve rate hikes, with markets pricing an 80% chance of a hike by year-end and nearly two within 12 months.
Rising Treasury yields and a 4% surge in crude oil prices, driven by renewed Iran-Israel tensions, added to investor unease. Futures struggled to stabilize as geopolitical risks compounded concerns over monetary policy tightening.