Stocks sink as interest rate hike odds rattle tech

Major stock indexes fell sharply after a strong jobs report set the stage for the Federal Reserve to hike rates.

Major stock indexes fell sharply Friday after a strong jobs report set the stage for the Federal Reserve to hike rates, rattling shares of companies that are involved in sky-high artificial intelligence investments.

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The threat of higher interest rates often sends stocks lower because borrowing money, especially the large sums that AI firms are borrowing, becomes more expensive.

The Nasdaq 100, which tracks the largest nonfinancial tech stocks traded on the Nasdaq stock exchange, plunged 4.7%, its worst day since April 2025, capping its worst week since March 2025.