Finance

The May employment report released on June 5 showed the addition of 172,000 new jobs, significantly outperforming market expectations of approximately 80,000. While the headline unemployment rate remained stable at 4.3%, the robust labor data has led markets to price in a higher probability of aggressive Federal Reserve rate hikes to combat persistent inflation.

Tech-heavy sectors that drove the market to record highs in May faced heavy selling pressure in early June, particularly among chipmakers. After a massive run-up fueled by artificial intelligence demand, industry leaders like Micron and AMD saw double-digit percentage losses, contributing to the Nasdaq's worst weekly performance in over a year.

The 10-year Treasury yield rose to 4.55% as investors reacted to a combination of strong economic data and elevated producer price index readings. Heightened concerns that the Federal Reserve may be forced to increase borrowing costs have pushed bond yields toward multi-decade highs, creating a challenging environment for growth-oriented assets.