US stocks slump as fears over Big Tech shake Wall Street
Summary
US stock markets fell sharply after a strong jobs report for April raised concerns that the Federal Reserve will keep interest rates high to fight inflation. The tech-heavy Nasdaq dropped over 4%, while other major indexes also fell, and investors moved money into safer sectors like healthcare and utilities.Key Facts
- The Nasdaq index fell more than 4%, marking its biggest drop since April 2025.
- The S&P 500 closed 2.6% lower, and the Dow Jones dropped 1.35%.
- A strong US jobs report fueled worries that the Federal Reserve will maintain high interest rates.
- High interest rates make borrowing more expensive, which can slow economic growth.
- Investors sold risky assets like tech stocks and Bitcoin, the largest cryptocurrency.
- Money flowed into safer sectors such as healthcare, utilities, and consumer staples.
- President Donald Trump criticized the market’s negative reaction to the good jobs data.
- President Trump plans to meet AI company leaders to discuss a proposal for the government to hold stakes in their firms.
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