But even after the sudden sell off, technology shares are still well up from where they were a few months ago.
The S&P 500 index lost 125.78 points to close at 3,455.06.
The Nasdaq dropped 144.97 points, or 1.3%, to 11,313.13. That's pushed the relative strength of the Nasdaq over the S&P 500 to the highest on record.
The S&P 500 Index fell 0.8 per cent at 4 p.m.
She noted it's not unusual for traders to pocket recent gains ahead of a holiday weekend.
The US stock market took a dive on Thursday, with the tech industry getting hit the hardest, making it the worst day for the market since June. Apple dropped 7.1%, Amazon lost 5.5% and Facebook gave back 5.1%. But if that so-called "short-gamma" hedging lifted stocks, logically it should also be capable of exacerbating moves the other way. Nvidia, Qorvo and Advanced Micro Devices fell 8% or more. The Nasdaq 100 dropped more than 5%, its biggest intraday decline since March.
The stocks that were doing better than the rest of the market were companies whose stocks have been beaten down this year: travel companies and airlines. However, market losses capped after the August jobs report showed strong job additions and a better-than-expected unemployment rate. But negotiations have stalled between Congress and the White House.
The action underscored investors' ongoing bet that tech stocks remain a clear victor during the coronavirus pandemic.
Tesla stock has added more than 31% since announcing second-quarter earnings on the afternoon of July 22, though that performance has declined this week - at the end of Monday's trading session, the stock had gained 56% since earnings. Huge amounts of support from the Federal Reserve and Congress have also helped bolster the economy.
Among individual stocks, shares of Apple rose 0.7%, recouping an earlier loss.
Investors pored through the newly-released U.S.jobs data.
Traders are seeking to find an appropriate valuation for tech stocks and gauge the health of the US economy as the coronavirus pandemic rages on after having killed more than 180,000 Americans. Tens of millions of Americans remain unemployed however, as seen by this week's unemployment benefits numbers.
If tomorrow's jobs numbers do not deliver, it's unlikely the stock market will rally much higher from here, analysts said.
The U.S. unemployment rate previously soared to a record 14.7 percent in April.
"However, this is unlikely to be a repeat of the tech wreck of the late 1990s, given how much the market and sector have changed", he added.
In energy trading, USA benchmark crude gave up 29 cents to $41,08 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the global benchmark, fell 0.8% to $44.07 per barrel.