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 world's most valuable company, lost 6.2%, with other chipmakers like Qualcomm also declining. Broadcom's soft guidance also contributed to the sell-off. 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% and the 2-year note yield rising 11 basis points to 4.16%. Gold fell 3.6%.