U.S. equity markets suffered a severe blow Friday as the Nasdaq Composite plunged more than 1,121 points, the largest single-day point drop ever recorded for the index. The selloff erased $1.8 trillion in S&P 500 market value in a single session.
The dramatic reversal came on the heels of a two-month rally that had lifted major indexes off earlier lows. Friday’s decline signaled an abrupt end to that recovery momentum, rattling investors across equity markets.
The breadth of the losses underscored broader uncertainty in technology and growth-oriented sectors, which had led much of the recent rebound. Investors are now reassessing risk exposure after the sharp reversal. For context on how AI-driven sectors had recently performed, software stocks had posted their best month since 2001 as sentiment around artificial intelligence improved, while Dell shares had surged roughly 33% on AI server demand just weeks prior.
Market participants will be watching closely in the coming sessions for signs of stabilization or further downside pressure.