U.S. equities closed sharply lower as weaker-than-expected payrolls data fueled concerns over economic growth and tech valuations.
The Nasdaq Composite tumbled 4% on Friday, leading losses across U.S. equities after May’s labor market report disappointed investors. The decline reflected broad-based selling in technology stocks, which faced pressure from rising recession fears and shifting rate-cut expectations.
The Dow Jones Industrial Average fell 1.3%, while the S&P 500 shed 1.7%, marking their worst daily performance in over a month. Analysts noted the payrolls print missed consensus estimates, raising questions about the Federal Reserve’s policy path amid cooling job growth.
Markets reacted swiftly, with tech-heavy indices underperforming as bond yields dipped and traders priced in a higher probability of earlier rate cuts.