Nasdaq Suffers 4% Blow as Chip Stocks Spark Biggest Drop Since 2025
Wall Street experienced a significant single-day selloff on Friday, June 6, marking one of the worst in over a year. A severe rout in semiconductor stocks led the Nasdaq Composite to a 4.18% plunge, closing at 25,709.43. This represents its most substantial one-day decline since the tariff turmoil of April 2025. The S&P 500 also fell 2.64% to end at 7,383.74, while the Dow Jones Industrial Average dropped 695 points, or 1.35%, settling at 50,866.78.
The selloff was primarily triggered by unsettling signs from the chip sector. Broadcom’s failure to raise its AI chip outlook earlier in the week sowed seeds of doubt among investors. The selling escalated sharply on Friday, further fueled by the blowout May jobs report. The report, which nearly doubled expectations, spiked Treasury yields and raised concerns that the Federal Reserve might delay rate cuts.
Despite the turmoil, Nvidia remains a beacon of hope. The company’s CFO, Colette Kress, stated at the Bank of America Global Technology Conference that Nvidia believes its addressable market can effectively double with the rollout of new chip generations. This increase would see a rise from approximately $40 billion per gigawatt for its current Blackwell Ultra architecture to as much as $100 billion per gigawatt for the future Feynman platform. Bank of America reiterated its Buy rating on Nvidia with a $350 price target.
The impact of the selloff also reached Asian markets. South Korea’s Kospi index plunged 5.54%, with Samsung Electronics and SK Hynix falling 6.4% and 9.92%, respectively. Japan’s Nikkei 225 also suffered, dropping 1.31%.
Source: CNBC — Stock Market Live Updates