Key facts
- U.S. stocks declined sharply on Friday, ending a nine-week winning streak.
- The U.S. economy added 172,000 jobs in May, exceeding economists' expectations.
- The strong jobs report increased the likelihood of a Federal Reserve rate hike in December.
- Technology and chip stocks experienced significant daily and weekly declines.
- U.S. Treasury yields rose, with the 10-year yield breaking above 4.5%.
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, with odds reaching 70.7%. The Nasdaq 100 plunged 4.7%, its worst single-day loss since October of last year and worst weekly loss since Liberation Day. The S&P 500 fell 2.64%, snapping a nine-week streak of gains. The Dow Jones Industrial Average lost 1.35%. Nvidia, the world's most valuable company, lost 6.2%, and the semiconductor index dropped 8.8%. Broadcom's soft guidance also contributed to the sell-off, with Qualcomm shares falling 11%. Lululemon Athletica slumped 8.6% after cutting its annual profit forecast. Cooper Companies rose 8.6% after beating second-quarter results. U.S. government bonds also declined, with the 10-year Treasury yield rising 7 basis points to 4.54%, breaking above the key 4.5% psychological threshold, and the 2-year note yield rising 11 basis points to 4.16%. Gold fell 3.6%.