Stocks fell on Wall Street Friday as big technology companies lost ground and weighed down the broader market.
Meanwhile, bond yields surged as a strong jobs report continued to dim expectations that the Federal Reserve will cut its benchmark interest rate this year.
The S&P 500 fell 1 per cent and is headed for its first losing week in the last 10. The Dow Jones Industrial Average fell 125 points, or 0.2 per cent, as of 10:20 a.m. Eastern. The Nasdaq composite fell 1.6 per cent.
Nvidia fell 3.1 per cent and Broadcom fell 4.2 per cent. They were among the biggest weights on the broader market countering broader gains. More stocks were rising than falling with the S&P 500. But, many of the bigger tech stocks have pricey values that tend to have an outsized influence on the broader market.
U.S. employers added a surprising 172,000 jobs in May, according to the Labor Department. It is yet another report showing that employment remains solid, despite rising inflation’s squeeze on businesses and consumers.
The bond market had strong reaction to the report. Treasury yields jumped significantly, with the yield on the 10-year Treasury rising to 4.54 per cent from 4.47 per cent. The market now sees a more than 60 per cent chance that the Fed will have to raise interest rates by the end of the year.
Oil prices remain elevated because the Strait of Hormuz, a narrow waterway crucial for global oil and natural gas transport, remains effectively closed, and the war-caused energy shock is threatening to slow economic growth and fuel inflation in many countries.
American and Iranian negotiators reached a tentative deal last week to extend their ceasefire, but the agreement has not been finalized, as developments in Lebanon have cast doubt on prospects for a permanent end to the conflict.
Chan Ho-him And Matt Ott, The Associated Press
