US open: Stocks head south as payrolls smash expectations

(Sharecast News) - Major indices were in the red early on Friday as investors digested May's jobs report.

As of 1500 BST, the Dow Jones Industrial Average was down 0.30% at 51,409.76, while the S&P 500 shed 0.94% to 7,512.69 and the Nasdaq Composite came out of the gate 1.57% weaker at 26,409.45.

The Dow opened 152.17 points lower on Friday, taking a bite out of gains recorded in the previous session.

Friday's primary focus was set to be news that US nonfarm payrolls rose by 172,000 in May, according to the Bureau of Labor Statistics, while the unemployment rate held steady at 4.3%, remaining within the narrow 4.3% to 4.5% range seen since mid2025. Economists were expecting to see just 85,000 jobs being added last month.

Shortterm unemployment fell back, with the number of people jobless for fewer than five weeks dropping by 286,000 to 2.2m, reversing the prior month's increase, while longterm unemployment was little changed at 2.0m but has risen by 524,000 over the past twelve months, accounting for 27.5% of all unemployed people. Leisure and hospitality led the month with 70,000 new jobs, well above its recent trend, including 48,000 in food services and drinking places, while local government employment rose by 55,000, driven by a 44,000 increase outside education, and health care added 35,000 jobs, in line with its recent average, with ambulatory services and home health care continuing to see steady growth.

Also of note, the change in total nonfarm payroll employment for March was revised up by 29,000 to 214,000, and the change for April was upwardly revised by 64,000 to 179,000.

US Treasury yields pushed higher after the NFP report, with market participants raising bets bets that the Federal Reserve could deliver a rate hike before yearend. The 10year yield moved back above 4.5%, while the 30year climbed past 5%.

Elsewhere, Donald Trump said he would be "honoured" to meet Ayatollah Mojtaba Khamenei, Iran's new Supreme Leader, if it was "to make a deal", with Washington and Tehran's fragile ceasefire now stretching into its ninth week.

In the corporate space, shares in Lululemon Athletica traded lower in early action after the athleisure business lowered its full-year earnings and revenue guidance, citing headwinds, and its outlook for the current quarter came in below Wall Street expectations.

Broadcom traded lower early on Friday, extending its more than 12% drop from Thursday's session, while Marvell Technology and Micron Technology were also in the red as traders continued to pare their exposure to artificial intelligence-linked names.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

McDonald's Corp. (MCD) $278.71 2.20%

Coca-Cola Co. (KO) $78.91 2.02%

Salesforce.Com Inc. (CRM) $190.14 1.90%

Procter & Gamble Co. (PG) $143.76 1.90%

Travelers Company Inc. (TRV) $298.92 1.89%

Amgen Inc. (AMGN) $351.98 1.67%

Unitedhealth Group Inc. (UNH) $400.75 1.43%

Johnson & Johnson (JNJ) $230.44 1.19%

Verizon Communications Inc. (VZ) $45.49 1.06%

3M Co. (MMM) $154.10 1.02%

Dow Jones - Fallers

Intel Corp. (INTC) $105.16 -4.64%

Caterpillar Inc. (CAT) $913.58 -2.86%

International Business Machines Corporation (CDI) (IBM) $292.57 -1.33%

Dow Chemical Co. (DOW) $34.22 -1.28%

Microsoft Corp. (MSFT) $426.24 -0.92%

Goldman Sachs Group Inc. (GS) $1,070.84 -0.87%

Nike Inc. (NKE) $43.50 -0.52%

Chevron Corp. (CVX) $187.77 -0.04%

Boeing Co. (BA) $216.98 -0.02%

S&P 500 - Risers

Chipotle Mexican Grill Inc. (CMG) $30.07 6.92%

DENTSPLY Sirona Inc. (XRAY) $10.16 6.16%

Sba Communications Corp. (SBAC) $209.32 4.52%

Incyte Corp. (INCY) $103.15 3.33%

Stryker Corp. (SYK) $309.63 2.89%

Align Technology Inc. (ALGN) $168.70 2.74%

Progressive Corp. (PGR) $200.70 2.72%

Universal Health Services Inc. (UHS) $146.92 2.72%

Coty Inc. Class A (COTY) $1.90 2.70%

Intuitive Surgical Inc. (ISRG) $426.13 2.64%

S&P 500 - Fallers

Western Digital Corp. (WDC) $532.12 -9.43%

Corning Inc. (GLW) $180.58 -8.66%

Coterra Energy Inc. (CTRA) $32.56 -8.62%

Micron Technology Inc. (MU) $941.61 -6.97%

QUALCOMM Inc. (QCOM) $230.58 -5.06%

Seagate Technology Plc (STX) $880.54 -4.70%

Intel Corp. (INTC) $105.16 -4.64%

Oracle Corp. (ORCL) $224.39 -4.64%

Hewlett Packard Enterprise (HPE) $50.92 -4.40%

Texas Instruments Inc (TXN) $293.85 -4.35%

Nasdaq 100 - Risers

DENTSPLY Sirona Inc. (XRAY) $10.16 6.16%

Incyte Corp. (INCY) $103.15 3.33%

Marriott International - Class A (MAR) $391.01 2.72%

Intuitive Surgical Inc. (ISRG) $426.13 2.67%

PACCAR Inc. (PCAR) $117.79 2.55%

Align Technology Inc. (ALGN) $168.70 2.50%

Cintas Corp. (CTAS) $182.45 2.21%

Charter Communications Inc. (CHTR) $133.75 2.14%

Amgen Inc. (AMGN) $351.98 1.94%

eBay Inc. (EBAY) $110.81 1.61%

Nasdaq 100 - Fallers

Qvc Group Inc Series A (QVCGA) $0.34 -13.49%

Western Digital Corp. (WDC) $532.12 -9.43%

Micron Technology Inc. (MU) $941.61 -6.97%

Baidu Inc. (BIDU) $125.55 -6.54%

QUALCOMM Inc. (QCOM) $230.58 -5.06%

Seagate Technology Plc (STX) $880.54 -4.70%

Intel Corp. (INTC) $105.16 -4.64%

Texas Instruments Inc (TXN) $293.85 -4.35%

Lam Research Corp. (LRCX) $317.23 -3.99%

Microchip Technology Inc. (MCHP) $92.70 -3.94%