Key facts
- US stock index futures declined after the May jobs report.
- The US economy added 172,000 jobs in May, exceeding the expected 85,000.
- The unemployment rate remained at 4.3%.
- Money markets indicate a 98% probability of a 25 basis point Federal Reserve rate hike by year-end.
- Chipmakers and tech stocks experienced declines in premarket trading.
- Lululemon Athletica slumped after cutting its annual profit forecast.
Wall Street's major indexes fell on Friday, as chipmakers lost steam following a sharp rally, while a stronger-than-expected monthly jobs report raised expectations of a hawkish monetary policy. Nonfarm payrolls rose by 172,000 jobs in May, surpassing the 85,000 forecast by economists. The unemployment rate remained at 4.3%. Money markets now see a 98% chance that the U.S. Federal Reserve will hike interest rates by 25 basis points before the end of the year, up from a nearly 60% expectation before the data. Chipmakers, including Nvidia, Intel, Micron, AMD, and Broadcom, dropped between 4.2% and 6.2%, with the Philadelphia SE Semiconductor index tumbling over 5%. Tech shares declined for a third straight session. Lululemon Athletica slumped 8% after cutting its annual profit forecast, while Cooper Companies rose 6.4% after beating earnings estimates. Citi said it was trimming equity exposure after a strong run, flagging rising inflation and positioning risks.