Nasdaq Posts Worst Drop Since April 2025, S&P 500 And Dow Drop As Strong Jobs Data Ignites Rate Hike Bets — TSLA, GME, META, BA, MSTR, GOOGL In Focus

• The S&P 500 lost 2.64%, the Nasdaq 100 tumbled 4.77% and the Dow slipped 1.35%. 
• Nasdaq 100 recorded the worst day and week since April 2025.
• Google has agreed to pay SpaceX $920 million a month for computing power.

U.S. stock indices dropped on Friday, led by weakness in chipmaker stocks as a strong jobs report raised rate hike bets, while Meta dropped amid reports the Instagram owner is planning a massive stock sale. 

The S&P 500 ended 2.64% lower, the Nasdaq 100 lost 4.77%, and the Dow Jones fell 1.35% on Friday, as per data from Koyfin. The Russell 2000, which tracks stocks with small market capitalization, dropped nearly 3.5%.

Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY) and Invesco QQQ Trust (QQQ) ended Friday around 3% and 5.3% lower, respectively. The SPDR Dow Jones Industrial Average ETF Trust (DIA) dropped 1.6%. 

The VanEck Semiconductor ETF (SMH) was among the worst-performing ETFs, falling 10%, tracking the wider sell-off in tech and chipmaking stocks, pushing retail sentiment on the semiconductor ETF into bearish territory.

Meanwhile, retail sentiment on Stocktwits for SPY remained “bullish”, while sentiment for DIA and QQQ moved to “bearish” territory.  

US Market Drivers

U.S. job growth topped forecasts in May and the unemployment rate held steady at 4.3% in a sign of a strong labor market, which raised bets that the strong data would clear the road for the Fed to increase its rates. 

The Bureau of Labor Statistics on Friday reported that nonfarm payrolls increased by 172,000 in May, well above the 80,000 jobs that economists polled by Dow Jones had expected to be added. The 10-year yield jumped above 4.5%, while the 30-year yield advanced above 5% 

“Today’s upside surprise underscores ongoing economic resilience, but it will also likely keep the Fed — and the markets — focused on inflation pressures,” said Ellen Zentner at Morgan Stanley Wealth Management in an interview to Bloomberg.

All of the magnificent seven tech shares dropped on Friday, in addition to weakness in chipmaking shares, including Broadcom (-8%), Micron Tech (-13%), ASML (-7%) and Intel (-12%) following the surge in Treasury yields. 

U.S.-traded chipmakers lost about $1.3 trillion in market value due to Friday’s sell-off, Reuters reported.  

The S&P 500 recorded its first weekly decline for the week ending June 5, after gaining for nine consecutive weeks. 

Trending Stocks To Watch 

Tesla (TSLA): Shares of Tesla Inc fell 5% on Friday following reports that the company has postponed its planned public demo for its next-generation Roadster to August or later.  

GameStop (GME): GameStop Corp. Chief Executive Officer Ryan Cohen is escalating his pursuit of eBay Inc, as per a media report, signaling a willingness to launch a hostile takeover campaign after the e-commerce company’s board of directors abruptly rejected his unsolicited $56 billion buyout offer.       

Meta Platforms (META): A media report said the company is weighing a large equity raise to help fund its expanding artificial intelligence ambitions.    

Boeing (BA): The aircraft manufacturer will begin building 737 Max aircraft on a new assembly line near Seattle on July 6 as it ramps up production.

Strategy (MSTR): Stocks dropped after Bitcoin prices crashed below $60,000. 

Alphabet (GOOGL): SpaceX on Friday disclosed a new multiyear cloud-service agreement with Google that will generate roughly $920 million per month starting in October. 

Read More: GME’s Ryan Cohen Isn’t Done Chasing eBay, Remains Committed To Cracking A Deal: Report

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