Nasdaq sinks more than 2.5%, leads market lower

NEW YORK (AFP) - The Nasdaq Composite Index tumbled more than 2.5 per cent Friday, as investors overlooked a solid US jobs report to sell off prominent names from across the tech sector.

At the closing bell, the Nasdaq sank 110.01 points (2.60 per cent) to 4,127.73.

The Dow Jones Industrial Average fell 154.51 (0.93 per cent) to 16,418.04, while the broad-based S&P 500 lost 23.43 (1.24 per cent) at 1,865.34.

The Department of Labor reported the US economy added 192,000 jobs in March, essentially meeting expectations and suggesting a continuation of the trend of slow but steady improvement in the labor market.

But analysts said the sell-off was spurred not by the jobs report or other news, but by the same negative sentiment that has hit tech and biotech names intermittently over the last few weeks.

A recurring concern is that hot technology stocks like Facebook and Netflix are overvalued.

"It is not about economic news, or earnings, or geopolitics; this is a market event," said Alan Skrainka, chief investment officer of Cornerstone Wealth Management.

"This is the frothiest part of the market cracking in a big way. Small caps are overvalued and the hottest names in the Nasdaq are leading the way down."

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