US stocks mostly declined on Friday after a stronger-than-expected jobs report reinforced expectations that interest rates will remain restrictive, while chipmakers extended their selloff. The S&P 500 and Nasdaq 100 fell 0.6% and 1.3%, respectively, while the Dow was little changed, holding near its record high. The US economy added a net 172K jobs in May, well above forecasts. This bolstered market expectations for a Federal Reserve rate hike this year, as a resilient labor market gives policymakers more room to counter inflation risks at a time when tensions between Iran and the US are keeping energy prices elevated.
Banks and defensive stocks mostly advanced, supporting the Dow, with Visa, Procter & Gamble, and UnitedHealth each gaining more than 1%. By contrast, Broadcom fell 4%, deepening a 13% slide from the previous session after the company missed guidance estimates, which weighed on broader AI infrastructure names. Micron dropped 4% and Nvidia declined 2%. Meanwhile, S&P Dow Jones Indices rejected a proposal for the fast-track inclusion of SpaceX into its benchmarks ahead of the company’s IPO next week, which is expected to be the largest in history.
