Dow recua após forte relatório de empregos dos EUA; venda em chips pressiona Nasdaq

US stocks moved lower on Friday as a stronger-than-expected May jobs report dampened expectations for interest rate cuts and triggered renewed selling across semiconductor stocks.

The Dow Jones Industrial Average was up 20 points while S&P 500 fell about 0.6%, while the Nasdaq Composite dropped 1.07%.

The market reaction followed fresh labor market data showing that nonfarm payrolls increased by 172,000 in May, significantly above economists' expectations.

According to the Bureau of Labor Statistics, employers added 172,000 jobs during the month after an increase of 115,000 in April.

Economists surveyed by Reuters had expected 85,000 new jobs, while a Dow Jones poll had forecast 80,000.

The unemployment rate held steady at 4.3%, matching market expectations.

Strong jobs data shifts Fed expectations

The stronger labor market report prompted investors to reassess the outlook for US monetary policy.

Money markets now assign a 98% probability that the Federal Reserve will raise interest rates by 25 basis points before the end of the year, according to market pricing.

Before the employment report, those odds had been closer to 60%.

Treasury yields climbed in response, with the benchmark 10-year yield rising above 4.5% and the 30-year Treasury yield moving above 5%.

The report arrives ahead of Federal Reserve Chair Kevin Warsh's first policy meeting later this month as policymakers continue to navigate elevated inflation and economic uncertainty linked partly to the conflict in the Middle East.

Chip stocks retreat after recent rally

Technology shares, particularly semiconductor companies, led the market lower.

Nvidia fell about 2%, while Intel, AMD, Micron Technology, and Broadcom declined between 3% and 5.5%.

Marvell Technology also dropped more than 6%.

Broadcom fell 3% after tumbling 12.5% on Thursday following weaker-than-expected quarterly revenue, adding to concerns that valuations across AI-related stocks may have become stretched.

Semiconductor stocks have been a major driver of Wall Street's rebound from its March lows, supported by strong AI-related demand and improving corporate earnings.

Geopolitics and corporate news remain in focus

Investors also continued to monitor developments in the Middle East after Hezbollah rejected a new ceasefire proposal for Lebanon, while Israel indicated it would keep troops in place, complicating US efforts to advance negotiations with Iran.

Citi said it was trimming equity exposure following the market's strong rally, citing rising inflation risks and investor positioning, while maintaining a constructive longer-term outlook supported by AI-driven earnings growth.

Among individual stocks, Lululemon Athletica fell nearly 8.7% after lowering its annual profit forecast and issuing second-quarter earnings guidance below Wall Street expectations.

Cooper Companies rose 8% after the contact lens manufacturer reported second-quarter results that exceeded analyst estimates.

Meanwhile, S&P Global confirmed it would not alter eligibility rules for its major indexes, effectively ruling out an immediate inclusion for SpaceX in the S&P 500 following its planned public debut.

Investors also awaited the results of the latest S&P Dow Jones Indices rebalancing, with Marvell Technology viewed as one of the potential additions to the benchmark index.

If current market moves persist through the session, the S&P 500 would post its first weekly decline since April, while the Nasdaq Composite would also finish the week lower.

The Dow Jones Industrial Average, however, remained on track for a third consecutive weekly gain.