S&P 500 and Nasdaq Fall as Bond Yields Rise Following Jobs Report
U.S. stock markets fell on Friday, weighed down by a sell-off in chip sector shares and rising Treasury yields after a May jobs report that exceeded expectations.
The S&P 500 dropped 1%, while the tech-heavy Nasdaq Composite slid 1.6%. The Dow Jones Industrial Average declined 151 points, or 0.3%. Shares of Broadcom fell around 3% after dropping more than 12% on Thursday. Marvell Technology fell more than 8%, while Micron Technology decreased by 6%.
The stock movements followed the Bureau of Labor Statistics (BLS) report showing nonfarm payrolls increased by 172,000 jobs in May, well above economists’ expectations of 80,000 jobs. The unemployment rate remained steady at 4.3%, in line with forecasts.
U.S. Treasury yields rose following the report, reflecting increased expectations that the Federal Reserve could raise interest rates before the end of the year. The 10-year yield climbed above 4.5%, while the 30-year yield exceeded 5%, according to the CME FedWatch Tool.
These market movements reflect a combination of investor concerns over elevated inflation and ongoing uncertainty in the technology sector, particularly among chip stocks, which are highly sensitive to interest rate hikes.(mrv)
Source : Newsmaker.id
