The S&P 500 lost $1.8 trillion in market value on Friday. The Nasdaq Composite posted its largest point drop in history, falling over 1,121 points.
The selloff ended a two-month rally for major stock indexes. It marked the first significant downturn in that period.
The losses hit nearly every sector. Technology stocks faced the heaviest selling pressure.
Investors reacted to changing economic signals. Labor market data and inflation concerns drove the shift in sentiment.
Bond yields rose sharply during the session. That move pushed investors to reassess risk across equities.
The selloff also reflected profit-taking. Many stocks had reached elevated valuations in recent weeks.
Market participants now focus on upcoming Federal Reserve policy signals. The central bank’s next meeting will be closely watched.
