Wall Street Slides Amid Surging Treasury Yields and Chip Selloff

Wall Street's indexes dropped as stronger job data heightened Treasury yields and fueled hawkish Federal Reserve bets. Nonfarm payrolls shot up, causing investor shifts, especially in semiconductor stocks. Tech shares fell for a third day, with the Nasdaq and S&P 500 facing notable monthly declines.

Wall Street's main indexes saw a downturn on Friday, driven by unexpectedly strong job data that sent Treasury yields soaring and bolstered hawkish Federal Reserve policy expectations. Additionally, chipmakers experienced a decline following a recent surge.

The rise in nonfarm payrolls surprised economists, reaching 172,000 in May, far surpassing the 85,000 forecast. This spike prompted a jump in U.S. Treasury yields, as traders firmly anticipate a Federal Reserve interest rate increase of 25 basis points by year-end.

Amidst these developments, new Fed Chair Kevin Warsh prepares for his first policy meeting. Meanwhile, tech shares declined for a third consecutive session, with the Nasdaq and S&P 500 recording their steepest monthly drops since March. Conversely, consumer staples led gains as investors diversified into different sectors.