Wall Street tumbles as jobs data sparks Fed rate hike fears

Wall Street experienced a sharp decline on Friday as a stronger-than-expected jobs report fueled expectations of a Federal Reserve interest rate hike later this year. The Nasdaq Composite plummeted 4.7%, its worst drop in nearly four years, while the S&P 500 fell 2.6% and the Dow Jones Industrial Average lost 1.3%. Tech stocks, particularly semiconductor companies like Nvidia, Broadcom, and Micron, led the sell-off, with investors reacting to the prospect of higher borrowing costs. The jobs report showed 172,000 new jobs added in May, significantly higher than forecasts, reinforcing concerns about persistent inflation. Treasury yields surged, with the 2-year note hitting a 15-month high, reflecting heightened rate hike expectations. Analysts noted that the strong economic data complicates the Fed's ability to cut rates, potentially increasing the likelihood of a hike before year-end. Meanwhile, oil prices slipped amid geopolitical tensions in the Middle East, with Brent crude falling 2.2% to $92.97 per barrel. The market's decline came ahead of SpaceX's planned IPO, which could test investor appetite for high-growth AI and tech stocks.