Key facts
- Wall Street stocks declined Friday, ending a nine-week winning streak.
- The U.S. economy added 172,000 jobs in May, exceeding expectations.
- The jobs report fueled fears of a hawkish policy pivot from the Federal Reserve.
- Markets are pricing in a higher likelihood of a Fed rate hike in December.
- Technology and chip stocks experienced their largest daily drop this year.
- Lululemon Athletica shares slumped after cutting its annual profit forecast.
Wall Street stocks declined sharply on Friday, ending a nine-week winning streak, as technology and chip stocks experienced their largest daily drop this year. A stronger-than-expected U.S. jobs report for May, which showed 172,000 jobs added and the unemployment rate holding at 4.3%, fueled fears of a hawkish policy pivot from the Federal Reserve. This robust data diminished hopes for an interest rate cut and led financial markets to price in a higher likelihood of a rate hike at the Fed's December meeting. The Nasdaq Composite fell 4.18%, the S&P 500 dropped 2.64%, and the Dow Jones Industrial Average lost 1.35%. Nvidia, the largest company by market value, lost 6.2%, with other chipmakers like Intel, Micron, AMD, and Broadcom also declining. Lululemon Athletica slumped 8.6% after cutting its annual profit forecast and projecting second-quarter earnings below Wall Street estimates. Cooper Companies rose 8.6% after beating second-quarter results. S&P Global announced it would not change eligibility requirements for its major indices. Marvell Technology is among the contenders for the S&P 500 index. The May jobs report also led to surging bond yields as stocks pulled back, with investors leaning out of the AI trade.