Overview
- The U.S. Labor Department reported about 172,000 payrolls for May, a surprise beat that lifted Treasury yields and reshaped investors’ expectations for interest rates.
- U.S. stock indexes fell sharply on Friday, with the S&P 500 down roughly 2.6% and the Nasdaq falling about 4%, as growth stocks led losses.
- Profit-taking in AI-linked semiconductors intensified after Broadcom’s weak guidance, sparking broad selling of chip names and steep declines in Asian tech markets such as South Korea’s Kospi.
- Stalled U.S.-Iran talks and renewed fighting in Lebanon kept oil and shipping risks high, which supported oil prices and added to investor caution about inflationary pressure.
- Investors rotated into defensive sectors like consumer staples and utilities; watch upcoming Fed decisions, energy developments affecting oil flows through the Strait of Hormuz, and remaining corporate earnings for signs of market direction.