Tech Stocks Tumble as Wall Street Winning Streak Ends

Wall Street's nine-week winning streak ended with a steep drop in technology stocks. A strong May jobs report stoked fears of a hawkish Federal Reserve policy, triggering significant sell-offs in technology favorites. The stock market's reaction was primarily impacted by positioning and geopolitical tensions in the Middle East.

Wall Street's nine-week winning streak came to a halt on Friday, marked by a significant downturn in technology stocks. This plunge followed the release of a robust May jobs report, which heightened apprehensions about a hawkish policy shift by the U.S. Federal Reserve.

The Nasdaq Composite Index experienced its largest single-day percentage drop since April 2025, predominantly due to heavy selling in chip stocks. The Philadelphia SE Semiconductor Index saw its most extensive one-day percentage fall since March 2020, wiping out over $1 trillion in market value. Meanwhile, the S&P 500's nine-week run of weekly gains concluded.

Analysts suggest the market's reaction stemmed more from aggressive positioning rather than fundamental concerns, with Ohsung Kwon of Wells Fargo citing an overbought semiconductor sector as a primary driver. Rising interest rates and ongoing conflict in the Middle East compounded the market's woes, leading to increased fears of systemic inflation.