Stocks slipped 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 1.1%. The Dow Jones Industrial Average fell 137 points, or 0.3%, as of 9:59 a.m. Eastern. The Nasdaq composite fell 1.8%.
Nvidia fell 3.1% and Broadcom fell 3.9%. 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.
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.
