Jun. 6 at 12:07 AM
Wall Street fell Friday after a stronger-than-expected U.S. jobs report fueled expectations that the Federal Reserve’s next move could be a rate hike rather than a cut. The S&P 500 dropped 1%, ending its nine-week winning streak, while technology stocks led the decline. Treasury yields jumped, with the 2-year yield rising 11 basis points to 4.15%, as markets fully priced in a Fed rate increase by the end of 2026.
U.S. payrolls exceeded all forecasts in May and the unemployment rate held steady at 4.3%, reinforcing the view that the labor market remains resilient despite earlier signs of slowing. Investors worry that strong economic growth, combined with inflation risks linked to geopolitical tensions and higher oil prices, could keep the Fed in a hawkish stance.
Interest-rate swaps now imply a high probability of a rate hike as early as October.
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