On June 2, 2023, major U.S. stock indexes fell significantly, with the S&P 500 down 0.90%, the Dow Jones down 0.32%, and the Nasdaq 100 dropping 1.85%. This decline comes after the release of stronger-than-expected U.S. May payroll data, which indicated an increase of 172,000 nonfarm jobs, surpassing expectations of 88,000. The unemployment rate held steady at 4.3%, while average hourly earnings rose 0.3% month-over-month, matching forecasts.
The yield on 10-year Treasury notes climbed to 4.54%, a two-week high, amid speculation of a potential interest rate hike by the Federal Reserve at its upcoming meeting on June 16-17. Markets are currently pricing a 3% chance of a 25 basis point increase. In the tech sector, notable losses were observed in semiconductor and AI stocks following Broadcom’s disappointing outlook, with ON Semiconductor and ARM Holdings both down over 8%.
Globally, stock markets also experienced declines, with the Euro Stoxx 50 down 0.17% and China’s Shanghai Composite hitting a seven-week low at -0.74%. The Eurozone’s Q1 GDP growth was revised down to -0.2% quarter-over-quarter, indicating economic contraction.
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