Stocks slide as Big Tech sinks and bond yields surge after a strong May jobs report

The S&P 500 fell 1% and is headed for its first losing week in the last 10. The Dow Jones Industrial Average fell 125 points, or 0.2%, as of 10:20 a.m. Eastern. The Nasdaq composite fell 1.6%.

Nvidia fell 3.1% and Broadcom fell 4.2%. They were among the biggest weights on the broader market countering broader gains. More stocks were rising than falling with the S&P 500. But, many of the bigger tech stocks have pricey values that tend to have an outsized influence on the broader market.

U.S. employers added a surprising 172,000 jobs in May, according to the Labor Department. It is yet another report showing that employment remains solid, despite rising inflation’s squeeze on businesses and consumers.

The bond market had strong reaction to the report. Treasury yields jumped significantly, with the yield on the 10-year Treasury rising to 4.54% from 4.47%. The market now sees a more than 60% chance that the Fed will have to raise interest rates by the end of the year.

Oil prices remain elevated because the Strait of Hormuz, a narrow waterway crucial for global oil and natural gas transport, remains effectively closed, and the war-caused energy shock is threatening to slow economic growth and fuel inflation in many countries.

American and Iranian negotiators reached a tentative deal last week to extend their ceasefire, but the agreement has not been finalized, as developments in Lebanon have cast doubt on prospects for a permanent end to the conflict.