Good news for the economy just delivered a gut punch to your portfolio. The S&P 500 plunged 2.64% after May’s nonfarm payrolls report showed employers added 172,000 jobs, more than double the roughly 80,000 that economists had penciled in.
The drop marked the index’s worst single-day performance of the year and snapped a nine-week winning streak. For the week, the S&P 500 shed 2.5%. The Nasdaq Composite fared even worse, tumbling 4.18% in its ugliest session since April 2025.
The jobs report that broke the rally
The May employment report landed with 172,000 new jobs while the unemployment rate held steady at 4.3%. The bond market reacted accordingly. The 10-year Treasury yield surged to near 4.5% during intraday trading, reflecting rapidly diminishing odds that the Fed will deliver rate cuts this year.
Crypto caught in the crossfire
