By TOI Business Desk
Publication Date: 2026-06-06 04:03:00
US tech stocks came under heavy pressure on Friday, with semiconductor giants leading the decline as investors grew cautious about artificial intelligence-fuelled valuations and digested stronger-than-expected US jobs data.The sell-off was most severe in the chip sector, where the PHLX Semiconductor Index plunged 10.3%, marking its steepest single-day fall since March 2020. The decline followed losses a day earlier after Broadcom’s quarterly earnings failed to meet the market’s elevated expectations for its custom AI chip business.The two-day rout erased roughly 12% from the semiconductor benchmark and wiped out around $1.3 trillion in market value from US-listed chipmakers.Nvidia shed about 6%, resulting in a loss of more than $300 billion in market capitalisation. Micron Technology dropped 13%, while Marvell Technology sank 17%. Advanced Micro Devices fell nearly 11%. Broadcom itself lost 7.9% on Friday, extending its decline over two sessions to almost 20%.The sharp retreat came just days after the semiconductor index reached a record high. Even after the latest losses, the gauge remains up 73% this year.“You’ve had a lot of people here that were just blindly buying the dip,” Dennis Dick, a proprietary trader at Triple D Trading told Reuters. “Blindly buying the dip had been winning you money, but that ended today.”
Strong jobs data rattles investors
Technology stocks also dragged broader US markets lower. The Nasdaq Composite fell 1.4%, while the S&P 500 declined 0.7%…
