US May job report adds 172,000 jobs, unemployment steadies, triggers Nasdaq plunge

The U.S. Bureau of Labor Statistics reported that 172,000 non‑farm jobs were created in May, keeping the unemployment rate at 4.3%. The gain exceeded the forecast of about 140,000 jobs and marked the third consecutive month of adding more than 100,000 positions, a level not seen since early 2024.

Economists noted the unexpected strength, with Homebase chief economist Guy Berger saying, “I think the labor market, for the first time in a long time, is moving in the right direction.” However, analysts warned that the robust payroll data could push the Federal Reserve to keep interest rates higher for longer, raising the probability that rates will remain unchanged at the June policy meeting to about 92%.

Financial markets reacted sharply. The Nasdaq fell 4.8%, the S&P 500 dropped 3.7%, and the Dow Jones slipped 2.9% as investors priced in a more restrictive monetary stance. Technology stocks led the losses, with chip makers such as Nvidia and AMD falling over 5%. Treasury yields rose to 4.55%, and Bitcoin slid to $58,000. European markets also felt the impact, and European Central Bank policy could be delayed as a result.

The transport sector saw its own employment trends. The U.S. Department of Transportation highlighted a decline in transport‑industry unemployment to 3.6% for May, the lowest among major sectors, while noting a 0.3% drop in airline employment following Spirit Airlines’ shutdown.