US stocks fell sharply on Friday as a steep selloff in semiconductor shares rattled markets. The Nasdaq dropped 4.2%, marking its worst session since April 2025, while the S&P 500 lost 2.6%. The Dow Jones declined 1.4% after reaching a record high the previous day. Chipmakers led the retreat, with Broadcom falling more than 7% following a double-digit decline on Thursday. Marvell Technology and Micron Technology plunged about 16% and 13%, respectively, while Intel and AMD lost around 11%. The weakness came after stronger-than-expected jobs data showed the US economy added 172,000 positions in May, far exceeding forecasts. The report pushed Treasury yields higher, with the 10-year yield rising above 4.5% and the 30-year yield topping 5%, fueling concerns that elevated borrowing costs could weigh on economic growth and investment. For the week, the S&P 500 fell more than 2%, while the Nasdaq lost around 4.7.
India’s BSE Sensex gave up some early gains to close about 0.2% down at 74,243 on Friday, as investors weighed the RBI's cautious outlook, foreign investor outflows and geopolitical uncertainties. The RBI unanimously kept the repo rate unchanged at 5.25% and maintained a “neutral” stance, while raising its inflation forecast and cutting its GDP growth projection for the current financial year. Meanwhile, the central bank also announced measures aimed at improving foreign investor participation and easing tax-related frictions in the bond market. Sector-wise, weakness in technology and metal stocks was offset by gains in financial stocks and selected heavyweights. Technology stocks remained under pressure throughout the session, led by TCS (-1.9%) and Tech Mahindra (-1.2%). Other top losers included Trent (-2.2%), Tata Steel (-1.8%) and NTPC (-1.3%). Conversely, Bajaj Finance (1.8%), Axis Bank (1.7%) and ICICI Bank (0.8%) were among the top gainers. For the week, the index shed 0.7%.
