Stocks slid lower on Friday after a stronger-than-expected May jobs report threw a curveball into expectations for interest-rate cuts. The S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all dipped as investors digested the latest economic data.
The Labor Department report revealed that the US economy added 272,000 jobs in May, surpassing expectations. However, the unemployment rate also ticked higher to 4.0%, indicating a mixed picture for the labor market.
Investors had been hopeful that slowing economic growth would prompt the Federal Reserve to consider cutting interest rates. But the robust jobs report suggested that certain sectors of the economy are still heating up, potentially delaying any rate cuts until later in the year.
In addition to the jobs report, market watchers were eagerly awaiting a livestream from GameStop booster Keith Gill, also known as “Roaring Kitty.” GameStop shares had surged on Thursday but took a hit after the company announced plans to sell up to 75 million shares.
Meanwhile, Nvidia’s 10-for-1 stock split was expected to be completed after the market closed, following a midweek rally that briefly pushed the AI chipmaker’s valuation to $3 trillion.
As investors continue to assess the implications of the jobs report and other market developments, the focus remains on the Federal Reserve’s next moves and the potential impact on interest rates. Stay tuned for further updates as the market reacts to the latest economic data and corporate news.
