Wall Street Stays Steady Amid Robust Jobs Data and Interest Rate Concerns

Wall Street stocks remained mostly flat on Friday after stronger-than-expected U.S. jobs data suggested a robust economy but raised concerns that the Federal Reserve may delay interest rate cuts. Financial equities advanced, while rate-sensitive real-estate stocks led losses. All major indexes were on track for weekly gains.

Wall Street stocks were mostly flat on Friday in choppy trading after stronger-than-expected U.S. jobs data pointed to a robust economy but also prompted worries that the Federal Reserve may wait longer to cut interest rates than many investors had hoped.

The U.S. economy generated about 272,000 jobs in May, far more than the 185,000 analysts had forecast, according to a Labor Department report

. The unemployment rate inched up to 4%. The benchmark S&P 500 slipped immediately after the report while

U.S Treasury yields climbed as traders slashed bets on a September rate reduction. But the index recovered and briefly hit a fresh intraday record high as investors noted the data pointed to underlying economic health.

"This tells you there's certainly not going to a cut in the short term, and with the bond yields going back up it's putting a lot of pressure on the risk-on trade, which is probably small caps," said Sandy Villere, portfolio manager at Villere & Co in New Orleans. "It's just a function of interest rates and maybe a little higher for longer, and people have to recalibrate for that type of environment. So it definitely looks like a risk-off trade so far today," he added.

Rate-sensitive real-estate stocks were leading losses, while financial equities were advancing ahead of others. All three major indexes were on track for weekly gains. Traders now see a 56% chance of a September rate reduction, according to the CME's FedWatch tool. Investors will eye U.S. inflation data next week and the Federal Reserve's two-day policy meeting, which ends on June 12.

"No one expects the Fed to cut (rates next week), but will they open the door for a cut as soon as September is the big question on everyone's mind," said Ryan Detrick, chief market strategist at the Carson Group, adding he still sees a September reduction on the table. At 2:28 p.m., the Dow Jones Industrial Average rose 10.90 points, or 0.03%, to 38,897.07, the S&P 500 gained 1.07 points, or 0.02%, to 5,354.03 and the Nasdaq Composite lost 36.36 points, or 0.21%, to 17,136.70.

GameStop slumped 38% in volatile trading just as stock influencer "Roaring Kitty" kicked off his first livestream in three years. The gaming retailer had announced a potential stock offering and a drop in quarterly sales. AMC Entertainment and Koss Corp down 14% and 17%, respectively.

Nvidia slipped 0.7%, on track to extend the previous session's losses, with its valuation again dipping below the $3 trillion mark. The chipmaker's highly anticipated 10-for-1 share split is due after markets close and could make the more-than-$1,000 stock cheaper for investors. Lyft shares rose 0.6%, following a forecast of 15% annual growth in its gross bookings through 2027

Declining issues outnumbered advancers by a 2.66-to-1 ratio on the NYSE. On the Nasdaq, 1,139 stocks rose and 3,039 fell as declining issues outnumbered advancers by a 2.67-to-1 ratio. The S&P 500 posted 17 new 52-week highs and 5 new lows while the Nasdaq Composite recorded 30 new highs and 131 new lows.