Traders work on the floor of the New York Stock Exchange during morning trading on June 4, 2026 in New York City.
Michael M. Santiago | Getty Images
U.S. stocks fell on Friday due to heavy selling in semiconductor stocks. The tech-heavy Nasdaq Composite Index fell 4%, the biggest decline since the tariff scandal in early 2025.
The trigger for this week’s chip turn was unclear. Broadcom’s failure to raise its AI chip outlook on Wednesday night disappointed some, and the group’s approval rating declined on Thursday. But Friday’s sell-off reached new levels. It didn’t help matters that U.S. Treasury yields soared following May’s much better-than-expected jobs report.
of Nasdaq It fell 4.18% to close at 25,709.43, its biggest decline since April 2025. S&P500 It fell 2.64% to end at 7,383.74. Dow Jones Industrial Average It fell 695.15 points (1.35%) to settle at 50,866.78. Blue-chip indexes closed at record levels on Thursday.
The S&P 500 index fell more than 2% this week, its first negative week in 10 years. Following Friday’s decline, the Nasdaq Composite Index fell 4.7%. The Dow Jones Industrial Average (30 stocks) fell slightly for the week.
Nasdaq Composite year-to-date
of iShares Semiconductor ETF It fell 10%, its worst day since March 2020. broadcom It fell nearly 8% after dropping more than 12% on Thursday. marvel technology It fell more than 16% on Friday. intel and advanced micro device It fell about 11%.
micron technologyThe memory chip maker, the latest star of the bull market, fell 13% after falling 8% on Thursday.
“Investors were kind of putting their finger on this sell button,” said Mark Hackett, chief market strategist at Nationwide. “You don’t necessarily have to exit, but if you’ve owned some of these big-name semiconductors for the last couple of months, you’re way off from your long-term positioning goals. You need to take profits at some point.”
In another sign of speculation coming out of the market, Bitcoin fell below $60,000 for the first time since late 2024.
Despite the recent decline, the iShares Semiconductor ETF is still up 79% year over year. The rout comes as tech investors prepare for next week’s largest IPO in SpaceX’s history. Elon Musk’s space and AI venture, which is already scheduled to go public at a valuation of $1.77 trillion, is fueling enthusiasm for the field, but also raising concerns among some that its debut marks the culmination of what appears to be an investment bubble. Some believe part of this decline in chips and Bitcoin is investors making room for IPOs in their portfolios.
“People looking to participate in next week’s SpaceX IPO are unlikely to use Procter & Gamble funds to raise money,” Nationwide’s Hackett said. “It’s going to be some of the AI trading, semi-finals, momentum stocks, or at least technology in general. … As we saw yesterday, when the rocks start rolling down hill, you’re going to see some pretty chaotic declines.”
Friday’s decline in tech stocks came after the Bureau of Labor Statistics reported that nonfarm payrolls rose by 172,000 jobs in May, well above the 80,000 increase expected by economists compiled by Dow Jones. The yield on the 10-year bond rose above 4.5% and the yield on the 30-year bond rose above 5%, key levels that have reignited concerns about the economic slowdown and rising borrowing costs for companies fueling AI development.
On Friday, investors moved money into health care and consumer staples stocks as they exited tech stocks. colgate palmolive add 4%, coca cola It has increased by more than 3%. Johnson & Johnson rose 2%.
—CNBC’s Jeff Cox and Garrett Downs contributed to this report.
