S&P 500 Tumbles 2.6%, Nasdaq Sinks 4.2% as Jobs Data Fuels Rate Hike Fears

U.S. stocks had their worst day since October on Friday, June 5, 2026, after a much stronger-than-expected jobs report sent bond yields soaring and raised bets the Federal Reserve will raise interest rates this year. The S&P 500 slumped 2.6% to 7,383.74, breaking a nine-week winning streak. The Dow Jones Industrial Average fell 695 points, or 1.3%, to 50,866.78. The Nasdaq composite tumbled 4.2% to 25,709.43, dragged down by steep declines in Nvidia and Broadcom. The Russell 2000 index of smaller companies dropped 3.5%. The Labor Department said employers added 172,000 jobs in May, roughly double economists’ forecasts, intensifying concerns that the Fed may need to tighten monetary policy. Bond yields surged, and oil prices fell. Despite the sell-off, the S&P 500 remains up 7.9% year-to-date.