Chips sector bloodbath drags Nasdaq down 4.2%

The Nasdaq plummeted 4.2% Friday, its worst session in 14 months, due to rising bond yields and concerns about AI trade growth expectations. Chip stocks, including Broadcom, suffered losses after a stronger-than-expected May jobs report triggered the jump in yields. This makes it more expensive for AI companies to maintain their spending. The decline is a bloodbath for the chip sector, which underpins the AI economy.