World shares recover after jobs report rattled markets

Wall Street partially recovered Monday, with the Nasdaq Composite rising after Friday’s 4.2% plunge triggered by a jobs report that nearly doubled forecasts.yahoo
South Korea’s KOSPI surged Tuesday, nearly recouping Monday’s 8.3% crash that had triggered circuit breakers amid fears the Fed would hold rates higher for longer.post-gazette
The blowout May jobs report — 172,000 payrolls versus roughly 85,000 expected — sent Treasury yields to multi-week highs and ended the S&P 500’s nine-week winning streak.wsj

Strong May Jobs Report Triggers Sharp Nasdaq Sell-Off, Ending Nine-Week Rally

The Bureau of Labor Statistics reported on June 5 that employers added 172,000 jobs in May, roughly double the consensus forecast of 80,000 to 85,000, sending the Nasdaq Composite plunging 4.2% in its worst single-day decline since April 2025. The S&P 500 fell 2.6%, snapping a nine-week winning streak, while the Dow Jones Industrial Average shed 1.35%.x

Rate Cut Hopes Evaporate

The blowout jobs number sent Treasury yields surging. The 10-year yield rose to 4.55%, its highest since May 21, while the 30-year yield climbed above 5%. The data reinforced expectations that the Federal Reserve will hold its benchmark rate steady at 3.5% to 3.75% at the June 17 FOMC meeting. Even before Friday’s report, futures markets had priced in virtually no chance of a rate cut in June and less than a 10% probability of any cut this year, according to the CME FedWatch Tool.stlouisfed

The unemployment rate held at 4.3%, while prior months were revised sharply higher, with March and April together adding 93,000 more jobs than previously reported. Analysts noted the headline figure was partly inflated by temporary hiring related to the 2026 FIFA World Cup, according to The Street.thestreet

Global Fallout and Recovery

The damage spread quickly across global markets. South Korea’s Kospi cratered 8.3% on Monday, triggering circuit breakers as the AI-heavy index bore the brunt of rising rate fears. Nvidia fell 6.2% and Broadcom dropped 7.9% on Friday.wsj

By Monday, Wall Street staged a partial recovery, with the Nasdaq climbing 0.9% as semiconductor stocks rebounded sharply — Intel surged 11.2% and Micron jumped 9.9%. On Tuesday, world shares were mostly higher, with the Kospi leaping 8.2% and U.S. futures pointing modestly upward.yahoo

Outlook Remains Uncertain

President Donald Trump expressed displeasure with the market reaction, posting that “with a great Jobs Report, like just announced, stocks should go up, not down”. But the fundamental tension remains: economic strength that delays monetary easing is unwelcome news for richly valued technology shares. The S&P 500’s weekly decline of 2.6% marked its worst since October, and analysts warned that elevated bond yields could continue to pressure equities in the weeks ahead.fortune