Traders work on the floor of the New York Stock Exchange on June 3, 2026 in New York City, USA.
Brendan McDiarmid | Reuters
of S&P500 and Nasdaq Composite Stocks fell on Friday, bogged down by falls in major semiconductor stocks and rising U.S. Treasury yields after a much better-than-expected May jobs report.
The broader market index fell 1%, and the tech-heavy Nasdaq fell 1.6%. of Dow Jones Industrial Average It fell by 151 points (0.3%).
share in broadcom It fell about 3% after dropping more than 12% on Thursday. marvel technology While it fell more than 8%, micron technology It fell 6%.
The move came after the Bureau of Labor Statistics reported Friday that nonfarm payrolls rose by 172,000 jobs in May, well above the 80,000 increase expected by economists surveyed by the Dow Jones survey. The unemployment rate was also in line with expectations, remaining stable from April at 4.3%.
U.S. Treasury yields rose on the report, increasing expectations that the U.S. Federal Reserve could raise interest rates by the end of the year, according to data from the CME FedWatch tool. The 10-year bond yield exceeded 4.5%, and the 30-year bond yield exceeded 5%.
“It’s going to be a tough start for Kevin Warsh,” said Stephen Coltman, head of macro at 21Shares. “Given the current state of the inflation and employment numbers, the debate is rapidly shifting from ‘When can the Fed cut rates?’ to ‘Why isn’t the Fed raising rates?!’ If the Fed shifts from a dovish bias to a hawkish bias, it will be a difficult transition for markets to digest and will likely lead to renewed volatility across asset classes.”
On Thursday, the blue-chip Dow Jones Industrial Average set a new record. The S&P 500 also rose, but the Nasdaq fell, weighed down by rotation in the technology sector.
“I think a lot of us want to grow the market, but I don’t think it’s growing from Mag Seven anymore, it’s actually from semi-cap equipment and hardware,” Charles Canter, senior portfolio manager at Neuberger Wealth, said Thursday afternoon on CNBC’s “Closing Bell: Overtime.” “We saw a little bit of that today, but the pipeline of demand associated with building compute centers and data centers will be a strong force from now until 2030.”
The S&P 500 index fell less than 1% for the week, its first negative week in a decade. The Dow 30 is expected to end the week up less than 1%, while the Nasdaq Composite is headed for a decline of about 2%.
—CNBC’s Jeff Cox and Garrett Downs contributed to this report.
