US Jobs Report Ends Equity Win Streak as Rate Expectations Shift

U.S. equity markets snapped a nine-week winning streak, recording their first weekly loss following a stronger-than-expected jobs report. The S&P 500 declined 2.4% on the week, while the Nasdaq 100 plunged 4% amid a significant selloff in chipmaker stocks. The resilient labor market data triggered a surge in benchmark interest rates to multi-month highs, forcing investors to price in the possibility of further Fed rate hikes rather than cuts.

This downturn coincides with persistent global inflationary pressures, as market data shows the Eurozone annual inflation rate rose to 3.2% in June 2026 from a previous 3%. Meanwhile, other major economies showed mixed signals; China's Services PMI reached a robust 54.4, indicating service sector resilience despite tightening monetary conditions per market data. The current 4% drop in the tech-heavy Nasdaq reflects a sharp reaction to hawkish repricing seen in previous cycles of interest rate volatility.

Looking ahead, traders are focusing on a speech by the Fed's Kashkari later today for clues on the central bank's next moves. Key labor market data, specifically the JOLTs Job Openings scheduled for June 2, 2026, will be a critical catalyst for market direction. Investors remain cautious as they monitor whether these upcoming events will solidify the bearish sentiment or provide a base for recovery at current price levels.