WASHINGTON (dpa-AFX) - Stocks have moved notably lower during trading on Friday, with the major averages all moving to the downside after ending the previous session. The tech-heavy Nasdaq has shown a particularly steep drop.
Currently, the major averages are off their worst levels but still firmly negative. The Nasdaq is down 468.14 points or 1.7 percent at 26,362.82, the S&P 500 is down 70.59 points or 0.9 percent at 7,513.72 and the Dow is down 134.87 points or 0.3 percent at 51,427.06.
The steep drop by the Nasdaq comes as technology stocks remain under pressure after seeing notable weakness during Thursday's session.
Yesterday's negative reaction to Broadcom's (AVGO) guidance continues to generate selling pressure amid concerns about valuations.
'The market is no longer asking whether AI demand is strong, that has largely been established,' said Daniela Hathorn, Senior Market Analyst at Capital.com. 'Instead, investors are beginning to question how much of that growth is already reflected in valuations.'
She added, 'In that sense, Broadcom's results may not have been disappointing, but they were perhaps not enough to justify another leg higher immediately after such a powerful rally.'
A sharp increase by treasury yields is also weighing on Wall Street, with yields surging following the release of stronger than expected U.S. jobs data.
The Labor Department released a report showing non-farm payroll employment shot up by 172,000 jobs in May after surging by an upwardly revised 179,000 jobs in April.
Economists had expected employment to climb by 85,000 jobs compared to the addition of 115,000 jobs originally reported for the previous month.
The data has added to recent speculation that the Federal Reserve will leave interest rates at their current level for an extended period.
Sector News
Gold stocks have moved sharply lower along with the price of the precious metal, resulting in a 5.9 percent nosedive by the NYSE Arca Gold Bugs Index.
Computer hardware and semiconductor stocks are also seeing substantial weakness, with the NYSE Arca Computer Hardware Index and the Philadelphia Semiconductor Index plunging by 5.7 percent and 5.2 percent, respectively.
Networking, software and oil service stocks have also shown significant moves to the downside, while pharmaceutical, transportation and healthcare stocks are bucking the downtrend.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower on Friday. China's Shanghai Composite Index slid by 0.7 percent, Japan's Nikkei 225 Index tumbled by 1.3 percent and South Korea's Kospi plummeted by 5.5 percent.
Meanwhile, the major European markets have turned mixed on the day. While the U.K.'s FTSE 100 Index is up by 0.3 percent, the French CAC 40 Index is down by 0.1 percent and the German DAX Index is down by 0.5 percent.
In the bond market, treasuries have moved sharply lower in reaction to the stronger than expected job data. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 6.7 basis points at 4.544 percent.
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