S&P 500, Nasdaq fall as 172,000 US jobs dim Fed cut hopes
What's new: Traders cut bets on a June rate cut and raised the odds of a Fed hike by the end of 2026 after the payrolls report.
US stocks opened lower Friday after a stronger-than-expected May jobs report pushed investors to scale back hopes for Federal Reserve rate cuts. The S&P 500 fell 0.62% at the open and the Nasdaq dropped 1.10%, while the Dow edged up 0.09%. The Labor Department reported nonfarm payrolls grew by 172,000 in May, and prior months were revised higher. The data reinforced concern that interest rates could stay elevated as inflation remains above the Fed's 2% target. Chip stocks also retreated after a sharp rally. CNBC reported futures markets were pricing in little chance of a cut at the Fed's June 16-17 meeting and roughly 70% odds of a rate hike by the end of 2026.