Nasdaq falls second day as Micron slides, tech sector drags

The Nasdaq Composite closed 4% lower on Friday, its biggest one‑day fall since April 2025, as Micron Technology and other AI‑linked chip makers tumbled between 11% and 17% [1].

What drove the move

A stronger‑than‑expected May jobs report added 172,000 jobs, more than double the 80,000 economists had forecast, while the unemployment rate held at 4.3% [1]. The surprise hiring surge pushed the CME FedWatch probability of a rate hike at the October meeting to roughly 50%, up from about 34% the day before. Higher‑for‑longer rate expectations lifted the 10‑year Treasury yield to 4.55%, the highest level of the day, and pressured equity valuations, especially in growth‑heavy tech stocks.

AI‑related chipmakers bore the brunt of the sell‑off. Micron, Marvell, Arm Holdings, AMD and Intel each fell between 11% and 17%, with Intel down about 10% for the week [1]. The broader tech sector, including the “Magnificent Seven,” saw Nvidia and Tesla slip more than 6% each. Broadcom led the decline with an 8% drop after a double‑digit fall the previous day. The weakness in the tech segment dragged the Nasdaq down 4.2% for the week, its steepest weekly decline since April 2025 [1].

Market spillovers

The rally in oil prices was short‑lived; West Texas Intermediate fell 2.9% to $90.35 per barrel, while Brent slipped 2% to $93.09 [1]. The U.S. dollar index rose 0.6% to 100.04, reflecting demand for safe‑haven currency amid the higher‑rate outlook. Gold futures dropped 3.6% to $4,345 an ounce, and Bitcoin slipped below $60,000 for the first time since October 2024 [1]. These moves underscore the cross‑asset impact of a single macro surprise.

What to watch

• Federal Reserve policy: The October 2026 Fed meeting will test whether the 50% probability of a rate hike materialises.
• Upcoming employment data: The next U.S. jobs report (June 2026) will confirm if May’s hiring surge was an outlier or the start of a new trend.
• Tech earnings calendar: Quarterly results from major chipmakers, especially Micron and Intel, later this month could either reinforce the sell‑off or provide a catalyst for recovery.

The Nasdaq’s sharp decline highlights how quickly a surprise jobs number can reshape expectations for interest rates, squeezing growth‑oriented equities. Whether the market views the higher‑for‑longer stance as a temporary blip or a lasting shift will hinge on forthcoming Fed guidance and the next wave of tech earnings.