Stocks Slide as Strong May Jobs Report Fuels Fed Rate Concerns:
U.S. stocks declined last week, pressured by rising oil prices that stoked inflation fears and a stronger-than-expected May jobs report that reignited concerns over Federal Reserve interest rate policy.
The Dow Jones Industrial Average slipped 0.32% , while the Standard & Poor’s 500 Index dropped 2.59% . The Nasdaq Composite Index fell 4.68%. The MSCI EAFE Index, which tracks developed overseas stock markets, slid 1.41%.1,2
Source: Bloomberg Finance, L.P. (Performance data normalized 05/29/26 = 0)
Under Pressure
June kicked off with modest gains as a tech rally overcame rising oil prices. On Monday, all 3 averages logged new all-time intraday highs and record closes. The S&P 500 recorded its first close above 7,600 on Tuesday, while the Dow advanced nearly a half percentage point.3
But stocks fell midweek as oil prices rose further. The S&P 500 broke its nine-day winning streak as investors fretted about the inflationary effects of the Middle East. By Wednesday’s close, the S&P and Dow Industrials had given back all the gains from the start of the week.4,5
On Friday, a stronger-than-expected jobs report prompted worries that the Fed may have to adjust short-term interest rates. Markets fell broadly, with the S&P down over 2½% for the session and the Nasdaq down over 4%.6
Sources: U.S. Department of the Treasury, Board of Governors of the Federal Reserve System, Charles Schwab
May Jobs
The federal government’s nonfarm payrolls report was out on Friday. The economy added 172,000 jobs in May, more than double what economists expected.7
Employers were playing catch-up after pausing hiring amid last year’s trade policy uncertainties and federal government budget cuts. Unemployment remained at 4.3% for the month. ADP’s report on private-sector hiring, released Wednesday, tracked similarly to the federal data.7
This Week: Key Economic Data
Source: Bloomberg Finance L.P.
This Week: Companies Reporting Earnings
Source: EarningsWhispers
Author
Gary Aiken
Chief Investment Officer
Concord Asset Management
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Footnotes and Sources
1WSJ.com, June 5, 2026
2Investing.com, June 5, 2026
3CNBC.com, June 1, 2026
4CNBC.com, June 3, 2026
5CNBC.com, June 4, 2026
6WSJ.com, June 5, 2026
7WSJ.com, June 5, 2026
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