Market Slump
Stocks Fall on Wall Street Amid Big Tech Slump, Despite Strong Job Growth
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Wall Street fell on Friday as a blowout jobs report killed hopes for interest rate cuts and big tech stocks tumbled. The S&P 500 dropped 0.7%, the Nasdaq slid 1.4%, and the Dow fell 81 points, or 0.2%, according to Orlando Sentinel.
The Labor Department said employers added 172,000 jobs in May — double what analysts had forecast. Bond yields surged on the news. Meanwhile, the ongoing Iran War kept oil prices elevated, with U.S. crude holding near $93 a barrel and Brent crude near $95, adding to fears about inflation and slow growth, Erie News Now reported.
Broadcom and Nvidia Lead Tech Sector Selloff
Broadcom shares plunged 12.5% after the chipmaker released fiscal second-quarter results Thursday evening. The company said its AI revenue doubled to $10.8 billion, but its 2027 forecast of $100 billion in AI revenue disappointed investors who wanted more, according to WFMZ. Nvidia also fell sharply, dragging the broader semiconductor sector down with it.
Analysts described a wave of "AI fatigue" hitting markets. Investors had driven chip stocks to historic highs since 2022. But by mid-2026, they are demanding proof of sustained, long-term demand — not just big quarterly numbers. Some analysts, however, called Broadcom's drop a buying opportunity, pointing to its 84% year-over-year revenue growth.
Jobs Report Crushes Rate-Cut Hopes, Yields Jump
The May jobs report was the biggest surprise of the day. Economists had expected between 80,000 and 105,000 new jobs. The actual number — 172,000 — was far stronger. Acting Labor Secretary Keith Sonderling called it "MASSIVE" and said it "shattered expectations." Average hourly earnings rose to $37.53, up 0.3% from April, Post Register reported.
The strong data hit bond markets hard. Higher yields make borrowing more expensive and reduce the appeal of high-priced tech stocks. Markets are now pricing in a rate hike before year-end. New Federal Reserve Chair Kevin Warsh, recently appointed by President Trump, faces pressure to keep rates high to fight inflation, Rutland Herald noted.
Iran War Keeps Oil Prices High, Spooks Investors
The Iran War, now in its fourth month, continues to rattle global markets. Iran closed the Strait of Hormuz in March, cutting off a shipping lane that normally carries 20% of the world's oil. Crude prices have climbed roughly 42% since the conflict began in February, rising from around $65 a barrel to the current $93–$95 range, according to Joplin Globe.
President Trump said Friday that peace talks with Tehran were in their "final stages." But Iranian officials reported no significant progress. The OECD warned on June 3 that a prolonged energy disruption could slow global growth to 1.8% by 2027. Central banks in India and elsewhere have already raised inflation forecasts for 2026–27 because of higher energy costs.
Old Economy Stocks Rise as Investors Rotate Out of Tech
Not everything fell on Friday. While tech "threw a tantrum," as one analyst put it, other sectors gained ground. Healthcare rose 3.1% and financials climbed 2.7% as investors moved money out of high-flying chip stocks and into more stable industries, Baltimore Sun reported. The Dow's smaller loss compared to the Nasdaq reflected this shift.
Technical analysts warned that the S&P 500's nine-week winning streak may finally be over. Some called it a "June swoon." The index closed at 7,538, down from recent highs. Gold held firm at $4,475 an ounce, a sign that some investors are looking for safer places to park their money while uncertainty remains high, according to Press Enterprise.
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