Tech stocks lead market bloodbath as fears of Fed rate hikes add to worries about the AI-fueled chip boom petering out

Tech stocks led a market decline as fears of prolonged Federal Reserve rate hikes and concerns about the AI-driven chip boom's sustainability intensified. A strong jobs report and disappointing guidance from chipmaker Broadcom exacerbated the selloff, with the Nasdaq dropping 4% and the S&P 500 falling 2.6%. Analysts noted a stable but non-inflationary labor market, delaying immediate rate hike expectations.