Friday’s labor report triggered a tech sell-off, dragging major U.S. equity benchmarks lower as traders reassessed rate-cut expectations.
U.S. stocks closed sharply lower Friday after May’s jobs report disappointed, pressuring the tech sector and broader market. The Dow dropped 1.3%, while the S&P 500 fell 1.2%, extending losses into the session’s close.
The decline followed a weaker-than-expected payrolls print, which reignited concerns over economic growth and Federal Reserve policy. Tech stocks bore the brunt of the selling, amplifying losses across risk assets. Prior to the report, both indices had posted modest weekly gains.
Traders now await further data to gauge the Fed’s next move, with rate-cut bets fluctuating amid mixed signals on inflation and labor market strength.