Stocks slip on Wall Street, big tech falls

A trio of traders work on the floor of the New York Stock Exchange, Wednesday, June 3, 2026. (AP Photo/Richard Drew)

Stocks slipped on Wall Street Friday as big technology stocks lost ground and weighed down the broader market.

Meanwhile, bond yields surged as a strong jobs report continued to dimmer expectations that the Federal Reserve will cut its benchmark interest rate this year.

The S&P 500 fell 0.7 per cent. The Dow Jones Industrial Average fell 81 points, or 0.2 per cent. The Nasdaq composite fell 1.4 per cent. Nvidia and Broadcom were among the heaviest weights on the market.

The Labor Department reported that employers added 172,000 jobs in May, roughly double what forecasters had expected. Bond yields surged. Oil prices edged lower.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.

Trading on Wall Street was mixed again early Friday as markets waited to comb through the latest U.S. jobs data for signs that the Iran war or AI are impacting companies’ hiring.

Futures for the S&P 500 lost 0.5 per cent before the opening bell, while futures for the Dow Jones Industrial Average edged 0.1 per cent higher, one day after hitting another all-time high. Nasdaq futures slumped 1 per cent as AI stocks appeared poised to take a beating for the second straight day, though not enough to erase losses from earlier in the week.

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Analysts are forecasting that the U.S. economy added 105,000 jobs last month, a solid figure by the labor market’s recent, diminished standards -- but down from 115,000 in April.

While some analysts fear that artificial intelligence will wipe out entry-level jobs, others argue that AI adoption has been more gradual than expected and has reduced hiring more than it has triggered layoffs.

Hiring has bounced back this year from a miserable 2025, showing unexpected resilience in the face of economic uncertainty and painfully high energy prices caused by the Iran war.

Higher oil prices raise the cost of just about everything and can make companies reluctant to hire, especially with no end to the Iran conflict in sight.

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The price for benchmark U.S. crude was unchanged from a day earlier at about $93 a barrel. It was the same story for Brent crude, the international standard, which was trading close to $95 per barrel. It was approximately $70 per barrel before the war began in late February.

Oil prices remain elevated because the Strait of Hormuz, a narrow waterway crucial for global oil and natural gas transport, remains effectively closed, and the war-caused energy shock is threatening to slow economic growth and fuel inflation in many countries.

American and Iranian negotiators reached a tentative deal last week to extend their ceasefire, but the agreement has not been finalized, as developments in Lebanon have cast doubt on prospects for a permanent end to the conflict.

Markets in Europe were broadly higher at midday with Britain’s FTSE 100 gaining 0.5 per cent, Germany’s DAX up 0.2 per cent and France’s CAC 40 adding 0.6 per cent.

South Korea’s Kospi sank 5.5 per cent to 8,160.59. The index has roughly doubled in the past year, lifted by gains for big tech companies like SK Hynix, which lost 9.9 per cent, and Samsung Electronics, which shed 6.4 per cent.

Japan’s Nikkei 225 slipped 1.3 per cent to 66,588.12, with technology shares leading the decline, even as official data showed that Japan’s real wages rose for the fourth straight month. Chip equipment maker Tokyo Electron’s shares fell 6.6 per cent.

Hong Kong’s Hang Seng declined 1.2 per cent to 24,961.95, while the Shanghai Composite index lost 0.7 per cent to 4,027.74.

Australia’s S&P/ASX 200 fell 0.7 per cent to 8,625.10.

Taiwan’s Taiex gave up 1.3 per cent, while India’s Sensex was down 0.3 per cent.

Chan Ho-him, The Associated Press