US stocks close sharply lower. The NASDAQ index has it worse trading day since April 2025

US equity markets endured a brutal Friday session, with the tech-heavy NASDAQ plummeting 4.18% — its steepest daily decline since April 2025. The selloff, which saw the S&P 500 shed 2.65%, was triggered by a surprisingly robust U.S. employment report that dashed hopes for imminent Federal Reserve rate cuts, compounded by news of major tech companies resorting to large equity raises to fund their AI ambitions. May's nonfarm payrolls surged by 172,000, dwarfing expectations and signaling a labor market far too strong for the Fed to ease monetary policy, immediately spiking Treasury yields. Simultaneously, reports that Meta Platforms is eyeing an equity offering for its massive AI buildout—hot on the heels of Alphabet's $85 billion raise—sparked concerns over market dilution and the sustainability of tech's speculative boom, particularly after months of extraordinary gains in AI and semiconductor stocks. With inflation proving stubborn and President Trump eyeing the November midterm elections, the Fed faces mounting pressure as policy options narrow. Investors will closely watch upcoming inflation data and corporate earnings for signs of a deeper correction or a healthy rebalancing. The shift in AI funding strategy, from cash flow to equity, suggests a new phase of capital intensity that could redefine valuations across the tech sector and beyond.