Nasdaq falls 4% as chip stocks sell off

U.S. stocks fell sharply on Friday, with the Nasdaq Composite dropping about 4% and the S&P 500 also moving lower as investors sold technology shares, especially semiconductors. The decline followed weak signals around chipmaker Broadcom’s outlook and added pressure to names including Nvidia, AMD, Intel and Micron. The market move also reflected a shift toward defensive sectors. Consumer staples and health care outperformed, while the bond market adjusted to strongerthanexpected U.S. jobs data that reduced expectations for Federal Reserve rate cuts later this year. Marketbased odds of an interestrate increase by yearend also rose. Outside equities, bitcoin fell below $60,000 to its lowest level since October 2024, adding to a difficult week for cryptorelated stocks. In corporate news, Paramount Skydance and Warner Bros. Discovery slipped after reports that states may sue to block their proposed merger, while Lululemon fell after cutting its fullyear outlook.