Strong Jobs Report Crushes AI Stocks Friday

A stronger-than-expected May jobs report triggered a sharp sell-off in AI stocks Friday. Nvidia fell 6%, Intel dropped 11%, Arm Holdings shed 13%, and Marvell tumbled 16%. The 172,000 nonfarm payrolls figure, more than double the 80,000 consensus estimate, dimmed hopes for Federal Reserve rate cuts. Growth stocks like AI names are particularly sensitive to rate fears, as higher rates reduce the appeal of future earnings. The sell-off followed a week of extreme volatility, with Alphabet's $80 billion equity offering and cautious Broadcom results adding further pressure on a sector already stretched by sentiment-driven valuations.