Key facts
- US employers added more jobs than expected in May.
- Strong jobs report increased bets on a potential Federal Reserve rate hike.
- US Treasury yields surged, with the 2-year note reaching a 15-month high.
- Major US stock indexes, including the Dow, S&P 500, and Nasdaq, fell sharply.
- Technology shares experienced significant sell-offs.
- Cryptocurrencies and gold extended recent declines.
Major stock indexes fell sharply on Friday, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite experiencing significant declines. This downturn was largely attributed to a stronger-than-expected jobs report for May, which bolstered expectations that the Federal Reserve might raise interest rates later in the year. The yield on the 2-year Treasury note surged to a 15-month high, reflecting these rate hike expectations. Technology shares were particularly hard-hit, with Nvidia and Broadcom seeing notable drops. Investors also adopted a defensive stance ahead of the weekend due to escalating geopolitical tensions in the Middle East, including Iran's support for Hezbollah and demands for Israel's withdrawal from Lebanon. Oil prices slipped, though Brent and US crude futures were still set for their first weekly gain in three weeks. The Japanese yen weakened against the dollar, with officials issuing warnings about its decline, while the euro and sterling also depreciated. Cryptocurrencies, including Bitcoin and Ether, extended their recent losses, and spot gold prices fell significantly.