US payroll surge drives sharp decline in stocks, gold and semiconductor shares

U.S. non‑farm payrolls for May 2026 rose by 172,000 jobs, well above forecasts, while the unemployment rate held at 4.3%. The stronger‑than‑expected labor market reinforced expectations that the Federal Reserve will keep interest rates high or possibly raise them later in the year.

Equity markets reacted sharply. The Dow Jones Industrial Average fell about 1.3 % to 50,866 points, the S&P 500 dropped roughly 2.6 % to 7,384, and the Nasdaq Composite slid about 4.2 % to 25,709 – the steepest daily decline for the tech‑heavy index since April 2025. Semiconductor and other tech stocks led the sell‑off, with Nvidia, AMD, Intel, Micron, Broadcom, Marvell and others losing between 7 % and 16 %.

U.S. Treasury yields rose, pushing the 10‑year rate above 4.5 % and the 30‑year above 5 %. The rally in yields and a firmer dollar reduced the appeal of non‑yield‑bearing assets. Spot gold fell 3.25 % to $4,329.50 per ounce, marking a weekly loss of over 4.5 %; silver, platinum and palladium also declined sharply. Analysts cited the payroll data and lingering Middle‑East geopolitical tension as the main drivers of the market’s risk‑off posture.