Nasdaq sheds 4%, suffers worst day in over a year

US stocks closed lower on Friday, weighed by profit-taking in technology shares and rising expectations that a resilient labor market could prompt further monetary tightening.

The Dow Jones Industrial Average fell 695 points, or 1.35%, to close at 50,866.

The S&P 500 declined 200 points, or 2.64%, to 7,383, posting its first weekly loss in 10 weeks with a decline of 2.6%.

The Nasdaq Composite tumbled 1,121 points, or 4.18%, to 25,709, marking its worst daily performance since April 2025. The index was pressured by concerns over trade disruptions stemming from tariffs imposed earlier this year, ending the week down 4.7%.

In Europe, the STOXX Europe 600 index slipped 0.29%, or 622 points, to close at 53.

The UK's FTSE 100 was little changed at 10,368, while Germany's DAX fell 0.75% to 24,759. France's CAC 40 lost 0.32% to 8,218.

In Asia, Japan's Nikkei 225 rose 1.31% to 66,588, while the broader Topix index gained 0.94% to 3,949.

In commodities, Brent crude futures for August delivery fell 2%, or $1.94, to settle at $93.07 a barrel. US WTI crude for July delivery declined 2.69%, or $2.50, to $90.54 a barrel.

Gold also came under pressure, with August futures falling 3.10%, or $139.70, to settle at $4,365.30 an ounce, as the stronger-than-expected US jobs report reinforced expectations that the Federal Reserve may keep interest rates elevated for longer.

Market sentiment was also weighed by uncertainty surrounding efforts to reach a settlement to the Middle East conflict, alongside continued selling pressure in technology stocks.