Treasury Yields Spike Past 4.5%, Semiconductor Stocks Tumble After Blowout Jobs Data

[Para 1: The Lead] Stronger-than-expected U.S. employment data triggered a simultaneous sell-off in stocks and bonds on Friday, as the 10-year Treasury yield surged past 4.5% and the Philadelphia Semiconductor Index plummeted over 10%. The robust labor market report dampened investor expectations for imminent Federal Reserve interest rate cuts. [Para 2-3: Supporting details & Context] The Labor Department reported nonfarm payrolls increased by 172,000 in May, significantly exceeding the 80,000 forecast, while the unemployment rate held steady at 4.3%. The yield on the benchmark 10-year Treasury note jumped over 6 basis points to 4.544%, its highest since May 21, 2026. The more rate-sensitive 2-year yield soared over 11 basis points to 4.162%. The data reinforced the view that the Fed has ample room to maintain restrictive policy to combat inflation. "With the labor market this strong, there's virtually no reason for a rate cut," said FwdBonds economist Christopher Rupkey. According to the CME FedWatch Tool, traders aggressively unwound bets on near-term easing following the report.