Strong U.S. Jobs Report Dims Rate Cut Expectations, Dragging Tech Stocks Lower; CGNX, GDYN, NSIT Among Losers

Shares of Cognex Corp. (CGNX), Grid Dynamics Holdings Inc. (GDYN), and Insight Enterprises Inc. (NSIT) fell in afternoon trading on June 6, 2026, after a stronger-than-expected May jobs report slashed expectations for Federal Reserve interest rate cuts. The U.S. Labor Department reported that nonfarm payrolls rose by 172,000 in May, well above economists’ forecast of 85,000, while the unemployment rate held at 4.3%. The robust labor market data signals economic resilience but reduces the likelihood that the Fed will lower borrowing costs in the near term. Higher-for-longer interest rates weigh on growth-oriented technology stocks by making future earnings less valuable in current dollars. Grid Dynamics, already volatile with 29 moves of more than 5% over the past year, saw its stock decline further. The shares are down 25.8% year-to-date and trading at $6.56, 47% below their 52-week high. Cognex and Insight Enterprises also retreated. The sell-off reflected a rapid repricing of rate expectations, with Treasury yields climbing after the jobs data.