Wall Street suffered a broad-based selloff on Friday, bringing an end to the S&P 500's nine-week winning streak as technology and semiconductor stocks posted steep losses amid growing concerns over U.S. monetary policy and geopolitical risks.

The decline followed the release of a stronger-than-expected U.S. employment report, which showed the economy added 172,000 jobs in May, significantly above market expectations. The unemployment rate remained unchanged at 4.3%, reinforcing the view that the U.S. economy remains resilient despite elevated interest rates.

While the jobs data underscored economic strength, investors interpreted it as reducing the likelihood of near-term interest rate cuts from the U.S. Federal Reserve. Market participants increasingly expect the central bank to maintain a restrictive policy stance for longer, weighing heavily on high-growth technology stocks that have led the market rally in recent months.

The technology-heavy Nasdaq Composite fell 4.18%, marking its largest single-day decline since April 2025. The S&P 500 dropped 2.64%, while the Dow Jones Industrial Average declined 1.35%. The Philadelphia Semiconductor Index recorded its largest one-day percentage decline since March 2020, erasing more than $1 trillion in market value across semiconductor companies.

Major chipmakers were among the hardest hit. Nvidia declined 6.2%, while Intel, AMD, Micron Technology, and Broadcom fell between 7.9% and 13.3% as investors took profits after a prolonged rally in artificial intelligence and semiconductor-related stocks.

Investor sentiment was also affected by continued tensions in the Middle East. Concerns over the Iran-Israel conflict and uncertainty surrounding shipping through the Strait of Hormuz raised fears that higher energy prices could contribute to renewed inflationary pressures, complicating the Federal Reserve's policy outlook.

Despite the sharp correction, several market strategists viewed the selloff as a positioning-driven move rather than a deterioration in corporate fundamentals. Analysts noted that semiconductor stocks had become heavily overbought following months of strong gains fueled by artificial intelligence investment themes.

Elsewhere, Lululemon Athletica fell 8.6% after lowering its annual profit forecast and issuing weaker-than-expected earnings guidance. In contrast, Cooper Companies gained 8.6% after reporting quarterly results that exceeded analyst estimates.

Cryptocurrency-related stocks also came under pressure as Bitcoin declined more than 4%, with Coinbase and Strategy posting notable losses during the session.

Trading activity remained elevated, with total volume on U.S. exchanges reaching nearly 22.9 billion shares, significantly above the recent 20-day average, highlighting the intensity of the market-wide risk-off move.