Traders work on the floor of the New York Stock Exchange.
NYSE
S&P 500 futures and Nasdaq 100 futures fell on Friday, bogged down by a sell-off in key chip stocks, as Treasury yields rose following a much stronger-than-expected jobs report for May.
Futures tied to the broad market index slipped about 0.6%, while Nasdaq 100 futures dipped 1.3%. Futures tied to the Dow Jones Industrial Average traded around the flatline.
Shares in Broadcom were 1.4% lower after tumbling 12.5% on Thursday, with Marvell Technology and Micron down 2.7%.
The moves came after the Bureau of Labor Statistics reported Friday that nonfarm payrolls increased by 172,000 in May, well above the 80,000 jobs that economists polled by Dow Jones had expected to be added. The unemployment rate also held steady from April at 4.3%, in line with expectations.
Treasury yields moved higher following the report, weighing on equities. The 10-year yield jumped above 4.5%, while the 30-year yield advanced above 5%.
On Thursday, the blue-chip Dow climbed 874.86 points, or 1.73% to a fresh record close. The S&P 500 added 0.41%, while the Nasdaq Composite slipped 0.09%, weighed down by a rotation out of the technology sector.
“A lot of us would prefer a broadening of the market, and when we say that I think it’s no longer broadening away from Mag Seven, it’s really a broadening away from semi-cap equipment and hardware,” said Charles Kantor, senior portfolio manager at Neuberger Wealth, on CNBC’s “Closing Bell: Overtime” on Thursday afternoon. “You had a little bit of that today, but the pipeline of demand for stuff related to building out compute and data centers from now even into 2030 is a powerful force.”
The S&P 500 is up less than 0.1% on the week. This slight gain puts it on track for its 10th straight positive week in a row, which would mark the longest positive streak for the index since 1985. The 30-stock Dow is poised to end the week up 1%, while the Nasdaq Composite is heading for a loss of 0.5%.
— CNBC’s Jeff Cox and Garrett Downs contributed to this report.