SynopsisWall Street experienced a sharp decline on Friday, led by the Nasdaq's significant fall, as a robust US jobs report fueled concerns about sustained high interest rates from the Federal Reserve. The strong employment figures intensified inflation worries, making rate cuts less likely and potentially increasing the chance of a future hike.Bombay TimesA surprisingly strong US jobs report for April showed employers added 1,72,000 jobs in May - more than double the 80,000 that economists had expected.Wall Street sharply crashed on Friday, with the tech-heavy Nasdaq tumbling more than 4% to record its biggest single-day fall since April 2025, after a better-than-expected US jobs report raised worries about the Federal Reserve’s higher interest rates.The Nasdaq Composite index sank around 4.2%, weighed down by a more than 6% crash in Nvidia's share price and a nearly 8% drop in Broadcom shares, whose relatively weak guidance on Wednesday spurred fears that AI demand may not grow as quickly as estimated. The Dow Jones Industrial Average fell 1.4%, while the S&P 500 dropped nearly 3%Why did the US stock market plunge?A surprisingly strong US jobs report for April showed employers added 1,72,000 jobs in May - more than double the 80,000 that economists had expected. While a strong jobs market reflects well on the economy, it can also trigger inflation worries and concerns that the Federal Reserve, the American central bank, is less likely to reduce its rates anytime soon."We are talking about a strong economy," said Gary Schlossberg, market strategist at ⁠Wells Fargo ‌Investment Institute, as quoted by Reuters. "That just adds to inflation risk coming from the Gulf. It makes it difficult for the Fed to even think about rate cuts and might even increase the chances - although we're still not ⁠forecasting that yet - of a rate hike by the Fed before the end of the year against the backdrop of inflation,” he said.Also read: Chip slump erases $1.3 trillion in stock market valueUS Treasury yields soarAs a result of the rising inflation worries, US Treasury yields surged. The yield on the 2-year note, which typically moves in step with Fed rate expectations, jumped to a 15-month high. Higher rates by the central bank make bonds more attractive and future corporate profits worth less in today's dollars. Digital assets also plunged along with the Wall Street indices. Cryptocurrencies extended recent declines, with bitcoin tumbling nearly 4%, while Ether crashed 10%. "About 51% of investors now forecast the Federal Reserve will raise interest rates at its late-October meeting — up from roughly 34% just yesterday, according to data on the CME FedWatch Tool, as on June 5."There are some near-term pressures on the short end of the curve, and it's largely because of the geopolitical impact on the price of oil and headline inflation, but looking through that, we also understand that these pressures tend to be temporary and calm back down," Reuters further quoted Talley Leger, chief market strategist at the Wealth Consulting Group, as saying.Also read: Bitcoin drops below $60,000, a first since October 2024(With inputs from agencies)(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)Read More News on(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price...moreless(You can now subscribe to our ETMarkets WhatsApp channel)Read More News on(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price...moreless