Friday was one of the worst trading days in Wall Street history. The Nasdaq Composite plunged 4.18% — the largest point drop on record, losing 1,121 points. The S&P 500 fell 2.64%, erasing roughly $1.8 trillion in market value. The Russell 2000 small-cap index lost 3.47%.

The damage was concentrated in semiconductors and mega-cap tech. Marvell Technology ((MRVL)) cratered 16.7% despite Nvidia CEO Jensen Huang calling it a candidate to become "the next trillion-dollar company" just days earlier at COMPUTEX. POET Technologies fell 23.4%, Micron ((MU)) dropped 13.3%, AMD ((AMD)) shed 10.9%, and Super Micro ((SMCI)) lost 11.2%.

What happened?

The sell-off was broad and brutal. Gold — typically a safe haven — fell 3.1% to $4,365 an ounce. Crude oil dropped 2.7%. The 10-year Treasury yield rose to 4.536%, signaling inflationary concerns and expectations that the Fed won't cut rates soon.

The VIX, Wall Street's fear gauge, surged 40% to 21.51 — the sharpest spike in recent months. Asian markets were hit hard: South Korea's KOSPI lost 5.5%, Japan's Nikkei fell 1.3%.

The backdrop: remarks from Fed Chair Kevin Warsh hinting at a possible rate hike added to preexisting anxiety in a tech sector that had rallied hard for months.

What day traders are saying

Among active day traders and short-term players, the mood is tense.

The central question is whether this is a buying opportunity or the start of a deeper rout. Some traders are watching the $700 level on SPY as a critical support zone — a break below that could accelerate selling. Others note the extraordinary trading volume — over 90 million shares on SPY alone — as evidence of capitulation and potentially a contrarian buy signal.

Marvell is drawing particular attention: the irony of a 16.7% crash following a high-profile CEO endorsement has not been lost on the trading community. Nvidia itself, down 6.2% to $205, is hovering near key levels that traders are watching closely.

The chatter draws a sharp line between bargain hunting and catching a falling knife. The extreme volatility reflects a deep split between those who see a generational entry point and those who expect more downside.

The bottom line

This is one of the most dramatic trading days of the year. Wednesday's Fed meeting now looms large — any hint of a hawkish stance could prolong the sell-off. Day traders are in "wait and see" mode, cautiously probing for a bottom while respecting momentum that is firmly to the downside.