Cloudflare (NET) Shares Fall 5.8% as Strong Jobs Report Dims Rate-Cut Prospects

Cloudflare (NYSE:NET) shares fell 5.8% in afternoon trading on June 5, 2026, after a stronger-than-expected U.S. jobs report cooled expectations for near-term interest rate cuts. The U.S. economy added 172,000 nonfarm payroll jobs in May, far exceeding economists’ forecast of 85,000, while the unemployment rate held steady at 4.3%. The robust data reduced the likelihood of Federal Reserve rate reductions, pressuring growth-oriented technology stocks. Higher interest rates lower the present value of future earnings, making high-valuation names like Cloudflare less attractive. Cloudflare shares have been volatile, recording 28 moves greater than 5% over the past year. The company reported strong first-quarter 2026 results last month, with revenue of $639.8 million, up 34% year-over-year and ahead of the $628 million consensus. Adjusted earnings per share of $0.25 also beat estimates. Cloudflare has also tied its growth narrative to AI infrastructure, recently partnering with Anthropic to launch secure agent sandboxes on its network. The stock remains up 28% year-to-date and trades near its 52-week high.