Strong Jobs Report Sends Stocks Lower as Fed Rate Fears Hit Wall Street

Wall Street ended the week with its worst day since October after a stronger-than-expected jobs report pushed bond yields higher and renewed investor concern about Federal Reserve interest rates.

The U.S. economy added 172,000 jobs in May, while unemployment stayed at 4.3%, according to the Bureau of Labor Statistics. Normally, strong hiring is a positive sign. But for markets, the report created a different problem: it suggested the economy may still be too strong for the Fed to ease borrowing costs soon.

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That pushed Treasury yields higher and weighed heavily on stocks, especially Big Tech. The Nasdaq fell 4.2%, the S&P 500 dropped 2.6%, and the Dow lost nearly 700 points.

The economic takeaway is that a strong labor market lowers recession fears, but it can also keep interest rates elevated, making mortgages, credit cards, business loans and stock valuations more expensive.

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