Finance

The tech-heavy Nasdaq Composite plunged 4.18% in its steepest one-day decline since early 2025, primarily driven by a massive retreat in semiconductor and artificial intelligence stocks. Key industry players like Nvidia and Broadcom faced heavy losses, with the broader Philadelphia Semiconductor Index falling over 10% as investors questioned current valuations amid a hawkish monetary outlook.

Bond yields spiked on Friday with the 10-year Treasury yield closing at 4.55% and the 2-year yield reaching 4.17%, its highest level since February 2025. This surge reflected a rapid shift in market sentiment, with traders now pricing in a 70% probability of a Federal Reserve interest rate increase by the end of 2026.

Digital asset investment products experienced their largest weekly outflows of 2026, totaling $1.67 billion as Bitcoin fell below the $60,000 threshold. The downturn in crypto assets has been more pronounced than in traditional equities, with Bitcoin now down approximately 30% from its yearly open as global risk concerns overshadow recent regulatory developments.