Strong May U.S. Jobs Report Pushes Yields Higher; Stocks Open Lower

CoinDesk reported that May's U.S. employment figures came in well above forecasts, prompting Wall Street to reprice the Federal Reserve's rate outlook. U.S. equities opened lower on Friday as Treasury yields jumped, with technology shares taking the brunt of the selling. The U.S. economy added 172,000 nonfarm payroll jobs in May, far above the market estimate of 80,000. The unemployment rate held at 4.3%, matching expectations. The stronger labor data reinforced the view that the job market remains resilient, easing expectations for near-term rate cuts. Traders also increased bets that the Fed could deliver another rate hike later this year. Treasuries sold off after the release, lifting yields across the curve. The 10-year Treasury yield moved above 4.5%, while the 30-year yield climbed past 5%. The 2-year yield also rose sharply. Higher yields point to borrowing costs staying elevated and make fixed-income assets more attractive, adding pressure to risk assets such as equities. At the open, the S&P 500 fell about 1%, the Nasdaq Composite slid roughly 1.6%, and the Dow Jones Industrial Average dropped around 150 points, or 0.3%. Declines were led by the technology sector, with semiconductors extending recent weakness. Marvell Technology was down more than 8% at one point, and Micron Technology fell about 6%. Chipmakers have been a key driver of U.S. market gains over the past year, and the pullback has amplified index-level pressure. Even so, the selloff has not been broad-based. Flows have continued into areas such as financials, healthcare, industrials and consumer goods, suggesting investors are rotating exposure rather than abandoning equities. On the week, the S&P 500 is on track for its first weekly decline in nearly 10 weeks, while the Nasdaq is down close to 2% for the week. With rate expectations shifting after the jobs report, near-term market volatility could remain elevated.