U.S. stocks posted their sharpest losses since April, as renewed volatility hit the markets on Friday. The Dow Jones Industrial Average fell 878 points (-1.9%), while the S&P 500 dropped 2.7% and the Nasdaq sank 3.6%, wiping out weeks of gains. The downturn was driven by a broad selloff in technology and growth stocks, with investor sentiment rattled by concerns over elevated valuations and global uncertainty. The decline also reflected a rotation out of risk assets as investors reassessed interest rate expectations and prepared for upcoming earnings reports.
Beyond headline figures, market breadth weakened significantly as nearly every major sector ended the session in negative territory. Defensive assets such as Treasuries and gold gained modestly, signaling a flight to safety. Analysts noted that while the selloff may be part of a broader correction phase, fundamentals remain strong for companies with solid balance sheets and sustainable earnings. As the new trading week begins, investors are watching for signs of stabilization in key sectors, especially technology and financials.
Why it matters
The sharp pullback highlights how quickly market sentiment can shift amid uncertainty. Investors are now looking for clear signals from earnings and economic data to determine whether the downturn is temporary or the start of a broader correction.