Major stock indexes fall as chip stocks lead decline on jobs data

Major U.S. stock indexes declined Friday after a government jobs report showed stronger-than-expected hiring and prompted investors to reassess the outlook for interest rates. The Nasdaq fell 4 percent, its largest single-day drop since April 2025. The S&P 500 declined 2.6 percent and the Dow Jones Industrial Average fell 1.35 percent.

Market reaction Chip-related companies accounted for much of the decline.

Shares of Micron Technology, Intel, Cisco and Nvidia posted the steepest losses, while shares of Meta, Amazon and Microsoft recorded smaller declines. The selloff began Wednesday evening after Broadcom issued weaker-than-expected quarterly guidance. Thursday’s losses accelerated Friday following the release of the employment data.

Employment report details The Labor Department reported that employers added a net 172,000 jobs in the most recent month, nearly double consensus forecasts. Revisions to prior months showed additional gains, indicating the labor market remained resilient despite higher oil prices.

Investors interpreted the data as reducing the likelihood of near-term Federal Reserve rate cuts. The yield on the 10-year Treasury note rose 5.5 basis points to 4.532 percent. Christopher Hodge, chief U.S. economist at Natixis CIB Americas, said the bar for rate increases remains high given subdued wage growth and anchored inflation expectations.

"The lack of a re-acceleration of wage growth in recent months points to a labor market that is stable, but not hot," he wrote.