Key facts
- U.S. stocks fell on Friday due to a stronger-than-expected jobs report.
- The jobs data increased expectations of a Federal Reserve rate hike.
- Treasury yields surged, with the 2-year note reaching a 15-month high.
- Chip stocks slid, with the Philadelphia chip index shedding 5%.
- Lululemon Athletica slumped 8% after cutting its annual profit forecast.
- S&P Global will not change eligibility requirements for its major indices.
Wall Street's main indexes fell on Friday as a stronger-than-expected U.S. jobs report for May bolstered expectations of a Federal Reserve interest rate hike, leading Treasury yields to surge. Nonfarm payrolls rose by 172,000 jobs, significantly higher than the 85,000 forecast. This data led traders to price in a near 100% probability of a 25 basis point rate hike by year-end. Chipmakers, which had driven a recent market rally, slid, with Nvidia losing 2.5% and the Philadelphia chip index down 5%. Technology shares fell 2.7% overall. Lululemon Athletica slumped 8% after cutting its annual profit forecast and projecting second-quarter earnings below estimates. Cooper Companies rose 8.5% after beating second-quarter results. S&P Global stated it would not change eligibility requirements for its major indices, impacting potential additions like SpaceX. S&P Dow Jones Indices is set to announce its rebalancing results, with Marvell Technology being a contender for the S&P 500.