Wall Street had one of those days where everything that could go wrong did. A May jobs report that came in almost twice as hot as expected sent investors scrambling for the exits, with the Nasdaq Composite dropping roughly 4.2% in its worst single-session decline since April 2025.
The S&P 500 fell 2.6%, while the Dow Jones shed approximately 1.4%. In total, the S&P 500 saw nearly $1.3 to $1.4 trillion in market value evaporate, with Big Tech and AI-adjacent stocks absorbing the heaviest blows.
A jobs report nobody wanted
US nonfarm payrolls added 172,000 jobs in May, against consensus estimates in the range of 80,000 to 90,000. Unemployment held steady at 4.3%. The data raised the probability that the Fed might actually hike rates later this year.
The 10-year Treasury yield climbed in response, reflecting a market that’s rapidly recalibrating its expectations for monetary policy.
