Overview
- The U.S. Labor Department reported that employers added 172,000 jobs in May, a surprise that arrived on Friday and was well above economists' forecasts.
- Treasury yields jumped after the jobs release, which increased market odds of a Federal Reserve rate hike later this year and lifted short-term borrowing costs.
- Broadcom's fiscal second-quarter revenue fell short of expectations earlier in the week, which triggered profit-taking across semiconductor and AI-related names and weakened tech leadership.
- U.S.–Iran negotiations have stalled and Hezbollah rejected a proposed ceasefire, keeping oil and shipping risks elevated and adding a geopolitical risk premium to markets.
- The combined effects produced a global re-pricing: U.S. indexes fell sharply with tech hardest hit, Asian markets led declines, investors rotated into defensive sectors, and oil and currency volatility rose.