US stocks slump as fears over Big Tech shake Wall Street

He said the figures raised the likelihood the Federal Reserve will raise interest rates this year, contributing to the stock market selloff.It meant investors who had been holding out for rate cuts were forced to quickly change their plans. However, Friday's selloff did not mark a global market panic. Instead, it saw investors shifting away from tech stocks, which critics have warned are overvalued and could crash in the same way as the dotcom bubble in the early 2000s. Major investment funds pulled money out of AI and microchip companies, which have seen their share prices soar in recent years.Instead of leaving the market entirely, investors piled instead into traditionally safer investments. Sectors such as healthcare, utilities, and consumer staples, including Kraft Heinz and Keurig Dr Pepper, saw a boost as traders looked for stability. The sharp drop highlights how vulnerable Big Tech stocks have become. With a handful of tech companies accounting for such a large chunk of the stock market, any shift in investor sentiment can easily drag the entire market down. Reacting to the market's drop, US President Donald Trump criticized the negative reaction to Friday's jobs report. He said "too much emphasis is placed on inflation".