US stocks today: S&P 500, Nasdaq slides as chip stocks fall, jobs data fuels hawkish Fed fears
US stocks fell Friday as chip shares reversed after a strong rally and a better-than-expected May jobs report boosted expectations of a hawkish Fed. Nonfarm payrolls rose 172,000 vs 85,000 forecast. S&P 500 -0.85% and Nasdaq -1.39%. Lululemon cut its profit outlook; Cooper Companies rose after beating estimates.
Company-specific guidance cut creates a direct earnings-risk repricing for Lululemon.
Lululemon slumped ~8% after cutting its annual profit forecast and projecting Q2 earnings below estimates.
Downward pressure likely to persist into subsequent sessions as the market digests the forecast cut.
Background
The article ties Friday’s market pullback to a stronger-than-expected May jobs report and rising expectations for Fed rate hikes before year-end.
Why it matters
Jobs data (172k nonfarm payrolls vs 85k forecast) lifted hawkish policy expectations, pressuring tech/semis; company-specific guidance (Lululemon) and earnings beat (Cooper) drove idiosyncratic moves.
Market relevance
Macro (jobs/rates) drove broad index weakness and a semiconductor pullback, while LULU and COOP delivered opposite company-specific earnings/guidance signals.
Market effects
Semiconductor complex pressured as jobs data increases odds of Fed hikes; Philadelphia Semiconductor index down >5%.
US macro-driven repricing (rates/hawkish Fed fears) driving broad index weakness (S&P 500, Nasdaq).
Higher-for-longer rate expectations can tighten global financial conditions, pressuring rate-sensitive growth/tech globally.
Alternative perspectives
If the jobs strength is interpreted as ‘healthy’ rather than recessionary, the semi selloff could be an overreaction that reverses quickly.
The article notes a ceasefire/earnings-supported rally earlier; if those supports remain, dip-buying may emerge once rate expectations stabilize.
Key entities
- companyLululemon Athletica
Cut annual profit forecast and projected Q2 earnings below estimates, triggering an ~8% drop.
- companyCooper Companies
Beat second-quarter estimates, lifting shares ~6.4%.
- institutionUS Federal Reserve
Jobs data increased odds of a 25 bp hike before year-end ahead of Chair Kevin Warsh’s first meeting.
