The stock market experienced a turbulent session on Friday as investors reacted to a hotter-than-expected jobs report. Major indices like the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all closed lower, while bond yields spiked, reflecting concerns over potential interest rate hikes by the Federal Reserve. Despite the day’s losses, all three indices posted weekly gains, highlighting the market’s resilience amid economic uncertainty.

Key Takeaways

• Indices Performance: Dow Jones fell 0.2%, S&P 500 dipped 0.1%, and Nasdaq Composite dropped 0.2% on Friday.
• Bond Yields: The yield on the 2-year Treasury note spiked to 4.87%, and the 10-year yield climbed to 4.428%.
• Jobs Report: The U.S. economy added 272,000 jobs in May, significantly higher than expected, with the unemployment rate rising to 4.0%.
• Market Sentiment: The strong jobs report dampened hopes for a Federal Reserve rate cut in July, with odds dropping to 8.9%.
• Weekly Gains: Despite Friday’s losses, the Dow was up 0.3% for the week, the S&P 500 gained 1.3%, and the Nasdaq Composite rose nearly 2.4%.

Market Reaction to Jobs Report

The release of the May jobs report, which showed a significant increase in employment, led to a mixed reaction in the stock market. While the strong job numbers indicate a robust economy, they also suggest that the Federal Reserve may need to keep interest rates higher for longer to combat inflation. This uncertainty led to a volatile trading session, with major indices initially rising before closing lower.

Bond Yields Spike

Bond yields surged following the jobs report, reflecting investor concerns about potential interest rate hikes. The yield on the 2-year Treasury note jumped to 4.87%, while the 10-year yield rose to 4.428%. Higher bond yields typically indicate expectations of higher interest rates, which can negatively impact stock prices.

Impact on Major Stocks

Several high-profile stocks experienced significant movements on Friday. GameStop shares plummeted nearly 40% despite a live stream from investor Keith Gill, also known as

Sources

• Stock Market Today: Dow, S&P 500, and Nasdaq Fall After Jobs Report; Nvidia Stock Split; GameStop, AMC, Nvidia, Tesla, Vail, Docusign, and More Movers; Bond Yields Spike, Barron’s.
• Stock market today: Stocks dip but notch weekly wins after jobs report smashes expectations, Yahoo Finance.
• Stock market today: Stocks slip and bond yields jump following a hotter-than-expected jobs report | AP News, AP News.
• Stock Market Today: Dow Jones Falls On Jobs Report; GME Stock Dives Ahead Of ‘Roaring Kitty’, Investor’s Business Daily.
• Stock Market Today: Stocks turn higher after hot jobs report; GameStop roars – TheStreet, TheStreet.