U.S. stocks opened lower Friday after a stronger-than-expected May jobs report complicated hopes for Federal Reserve rate cuts, prompting investors to reassess interest rate expectations heading into the summer.
The Dow Jones Industrial Average was down 7.66 points, or 0.01%, to 51,554.3 at the opening bell. The S&P 500 fell 48.72 points, or 0.64%, to 7,535.59, while the Nasdaq Composite dropped 292.27 points, or 1.09%, to 26,538.7.
According to the U.S. Bureau of Labor Statistics, nonfarm payrolls increased by 172,000 in May while the unemployment rate held at 4.3%. The report exceeded many economists' expectations and reinforced the view that labor-market conditions remain resilient despite elevated interest rates. The stronger employment picture reduced expectations that the Federal Reserve will be under pressure to ease policy in the near term. According to AInvest, the report strengthened the case for a more hawkish Fed stance as policymakers continue monitoring inflation trends.
Attention also remained focused on Apple ahead of next week's Worldwide Developers Conference. Wedbush analyst Dan Ives described the event as a potentially pivotal moment for Apple's long-awaited artificial-intelligence strategy, arguing that WWDC could mark the beginning of an AI monetization cycle across Apple's ecosystem. Wedbush maintained an Outperform rating and a $400 price target on the stock, saying AI services could ultimately add meaningful revenue opportunities for the company.
Risk sentiment weakened across several asset classes. Bitcoin fell 3.46% to $61,952.59, while the CBOE Volatility Index rose 2.40% to 15.77, indicating increased demand for portfolio protection. Brent crude slipped 0.33% to $94.72 a barrel.