U.S. stock markets plunge as strong jobs report lifts Fed rate‑hike odds

U.S. equity indexes suffered their steepest falls in months after the Labor Department reported 172,000 jobs added in May, well above expectations. The strong payroll numbers raised the probability of a Federal Reserve rate increase to about 43% in December, prompting a risk‑off shift.

The tech‑heavy Nasdaq Composite dropped more than 4%, its worst day since October, while the S&P 500 slipped 2% and the Dow Jones Industrial Average fell roughly 1%. Weakness was concentrated in AI‑related and semiconductor stocks, with Broadcom shares down nearly 13% after soft guidance and a memory‑chip ETF losing 12‑15%. Bitcoin fell over 5% to under $60,000 and gold declined more than 3% as higher Treasury yields (10‑year yield at 4.54%) made non‑yielding assets less attractive. "In the near term the data confirms that Fed easing is off the table this year," said James McCann, senior economist at Edward Jones.