US stock market crash explained: Why did Nasdaq plunge 4% to log worst day in over a year
Friday’s US market selloff was led by the Nasdaq, which fell about 4.2% to its biggest one-day drop since April 2025, after a stronger-than-expected jobs report raised concerns the Fed will keep rates higher for longer. Nvidia shares fell over 6% and Broadcom nearly 8%. The S&P 500 dropped about 3% and Treasury yields rose, according to Reuters.
NVDA is a key driver of the Nasdaq selloff, with the article citing a sharp same-day drawdown tied to AI-demand concerns.
Nasdaq’s ~4.2% drop is attributed to Nvidia shares crashing more than 6% on the day.
Near-term downside bias as rate-sensitivity and AI-demand fears reinforce risk-off positioning.
Background
A stronger-than-expected US jobs report raised concerns the Fed will keep rates higher for longer, pushing Treasury yields to a 15-month high and weighing on equities and crypto.
Why it matters
The immediate mechanism described is: stronger employment → higher inflation risk → fewer/less likely rate cuts → higher yields → lower present value of future earnings, hitting tech/AI and other rate-sensitive names.
Market relevance
This is a macro-driven risk-off day with explicit read-across into AI/semis (NVDA, AVGO) and other large decliners, tied to higher yields after the jobs print.
Market effects
Higher yields and AI-demand skepticism are pressuring the AI/semiconductor complex (NVDA/AVGO) and broader tech duration.
US-focused risk repricing via Treasury yield spike; spillover likely into global tech/semis sentiment.
Rate-sensitive growth assets and crypto also sold off, indicating a global risk-off impulse beyond US equities.
Alternative perspectives
The article cites strategists expecting short-end yield pressures to be temporary; if inflation fears cool, the tech selloff could partially mean-revert.
The piece doesn’t quantify how much of each stock’s move is valuation/duration vs company-specific fundamentals; traders may need to separate AVGO’s guidance effect from purely macro-driven beta.
Key entities
- indexNasdaq Composite
Tech-heavy index fell ~4.2% to its biggest single-day drop since April 2025.
- institutionFederal Reserve
Higher-for-longer rate expectations were reinforced by the jobs report and inflation concerns.
- data_sourceCME FedWatch Tool
Shows investors’ odds of a late-October rate hike rising to ~51%.
- companyNvidia
Shares fell more than 6%, cited as a major drag on the Nasdaq.
- companyBroadcom
Shares fell nearly 8% after relatively weak guidance spurred AI-demand growth fears.
