US tech stocks tumbled the most since Donald Trump’s “liberation day” tariff announcements in April 2025 shook Wall Street as rising bets on the Federal Reserve raising interest rates sent AI-linked shares reeling.
The Nasdaq Composite fell 4.2 per cent on Friday, the biggest drop since April 10 last year, as shares in chipmakers and memory groups sold off sharply. The blue-chip S&P 500 declined 2.6 per cent, snapping a nine-week winning streak.
Friday’s rout began after a much stronger than expected US jobs report triggered bets that the Fed will raise rates this year, sending short-term borrowing costs zooming higher. It comes after Wall Street stocks have soared in recent weeks to record highs amid optimism about vast investments in data centres and equipment to fuel the AI boom.