Stocks slide as Big Tech sinks and bond yields surge after a strong May jobs report

NEW YORK (AP) — Stocks fell on Wall Street Friday as big technology companies lost ground and weighed down the broader market.

Meanwhile, bond yields surged as a strong jobs report continued to dim expectations that the Federal Reserve will cut its benchmark interest rate this year.

The S&P 500 fell 1% and is headed for its first losing week in the last 10. The Dow Jones Industrial Average fell 110 points, or 0.2%, as of 11:03 a.m. Eastern. The Nasdaq composite fell 1.9%.

Nvidia fell 3.7% and Broadcom fell 4.6%. They were among the biggest weights on the broader market countering broader gains. More stocks were rising than falling with the S&P 500. But, many of the bigger tech stocks have pricey values that tend to have an outsized influence on the broader market.

Lululemon slumped 6.8% after trimming its revenue and profit forecasts.

U.S. employers added a surprising 172,000 jobs in May, according to the Labor Department. It is yet another report showing that employment remains solid, despite rising inflation’s squeeze on businesses and consumers.

“Any hopes of a Fed rate cut have effectively been eliminated with this morning’s strong jobs report,” said Ronald Temple, chief market strategist at Lazard, in a research note.

The bond market had a strong reaction to the report. Treasury yields jumped, with the yield on the 10-year Treasury rising to 4.54% from 4.50% just before the report was released. The yield on the 2-year Treasury, which more closely tracks the Fed's actions, jumped to 4.15% from 4.04% just prior to the report.

The market now sees a more than 60% chance that the Fed will have to raise interest rates by the end of the year, according to CME FedWatch.

The Fed has been holding interest rates steady as it tries to gauge the ongoing impact from rising inflation. Prices were already ticking higher from the impact of tariffs. The U.S. war with Iran has essentially blocked crude oil shipments from moving through the Strait of Hormuz.

The price of Brent crude, the international standard, fell 1.2% to $93.90. It was about $70 per barrel before the war. The surge in oil prices have prompted a jump in gasoline prices. That has fueled a broader rise in inflation as prices for anything being shipped rises and threatens to slow economic growth.

Wall Street had been hoping for an opening that would allow the Fed room for cutting interest rates. Lower interest rates can make it less expensive for companies and consumers to borrow cash. That can help relieve pressure and boost economic growth. But lower interest rates can also worsen inflation, countering any benefits from an otherwise growing economy.

A measure of inflation preferred by the Fed showed that prices rose 3.8% overall in April. That marked the biggest increase in two years.

Wall Street has been anticipating that negotiations to end the war will eventually be successful. American and Iranian negotiators reached a tentative deal last week to extend their ceasefire, but the agreement has not been finalized.

Markets were mixed in Europe after markets in Asia fell.

A trio of traders work on the floor of the New York Stock Exchange, Wednesday, June 3, 2026. (AP Photo/Richard Drew)

A board above the trading floor of the New York Stock Exchange displays the closing number for the Dow Jones industrial average, Wednesday, June 3, 2026. (AP Photo/Richard Drew)

A board above the trading floor of the New York Stock Exchange displays the closing number for the Dow Jones industrial average, Wednesday, June 3, 2026. (AP Photo/Richard Drew)

Currency traders pass by a screen showing the Korea Composite Stock Price Index (KOSPI) and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Friday, June 5, 2026. (AP Photo/Ahn Young-joon)

A screen shows South Korean companies's stock prices related to Nvidia CEO Jensen Huang, who is scheduled to visit South Korea at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Friday, June 5, 2026. (AP Photo/Ahn Young-joon)

Currency traders watch monitors near a screen showing the Korea Composite Stock Price Index (KOSPI) and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Friday, June 5, 2026. (AP Photo/Ahn Young-joon)

RALEIGH, N.C. (AP) — A failed coach’s challenge by John Tortorella was a momentum-changing moment in Game 2 of the Stanley Cup Final on Thursday night.

His Vegas Golden Knights appeared to score with five minutes left in regulation, but referee Jean Hebert waved it off immediately, citing goaltender interference. Hebert announced that he and the other on-ice officials thought Ivan Barbashev pushed Carolina Hurricanes goaltender Frederik Andersen to knock the puck into the net.

Tortorella after some deliberation decided to challenge the play, and it did not take long for officials and the on-site NHL situation room to stick with the call on the ice of no goal. The Hurricanes scored on the ensuing power play 25 seconds later and went on to win 4-3 in overtime to tie the series.

“I saw a loose puck in front of Freddie," Tortorella said. "Our player stabbed it, didn’t move the goalie and it goes through him into the other side. I’d challenge it 10 out of 10 times.”

The next morning, he expressed no regrets.

“That’s been explained by the league, and I stand behind my decision," Tortorella said Friday.

It was purely a video review of goalie interference and had nothing to do with whether the whistle was blown before the puck crossed the goal line.

“The ruling on the play was goaltender interference,” Stephen Walkom, executive vice president and director of officiating, told a pool reporter. “He waved it (off) immediately. He believed that it was under the goalie, and the Vegas player went after the puck and interfered with the goalie and his ability to freeze the puck and waived it off immediately.”

Mark Jankowski had just tied it for the Hurricanes a few shifts earlier after Logan Stankoven started the comeback from down 2-0. On the opposing bench, Carolina players and coach Rod Brind'Amour were not sure how the review was going to go.

“Obviously, you’re hoping for the best,” center Sebastian Aho said. “You can’t really control it. I didn’t have a really good view of it, so I had no clue. So, I was just hoping for the best.”

Brind'Amour decided not to challenge for goalie interference in Game 1 on Tuesday night because there were too many variables at play. His thinking turned out to be right again.

“It happened to us in I guess the first game: When it’s called a goal or no goal on the ice, it better be 100% to challenge it,” Brind'Amour said. “That’s the rule we go by. So, they called no goal on the ice, so that’s kind of how I think it worked out. I don’t know. I don’t know what the explanation is. It looked like he had it covered, and then all of a sudden it was in the net. I don’t know. I haven’t really looked at it. I was just happy that it went our way.”

Andersen went full extension to make a paddle save to deny Barbashev on the initial shot. A scrum ensued around the crease, with players diving at the puck hoping to knock it in or keep it out.

“To me, it felt like a no goal,” Hurricanes captain Jordan Staal said. "Obviously, I’m on the other side, but I’m sure they have a different opinion. My gut was like, ‘Man, there’s no way.’ What an incredible effort by Freddie just staying with that one and finding a way to get a piece of that. I was flopping everywhere. I didn’t know what was going on. Freddie just stuck with it. The guy’s an absolute animal. That was a pretty crazy play and obviously a game-changer for us.”

The punishment for a failed coach's challenge is a two-minute minor penalty. Vegas was 4 for 4 on the penalty kill against Carolina's power play to that point in the series.

“I’m not sure how they go about their thought process, Brind'Amour said. “They’ve obviously killed all the penalties. That’s a big one.”

Staal made sure the Golden Knights didn't kill this one, tipping defenseman Shayne Gostisbehere's point shot in for the Hurricanes' eighth power-play goal of the playoffs. Seth Jarvis made it nine when he scored in overtime, though it may have never gotten to that point had Tortorella not challenged.

“You’d like to make them pay every time," Aho said. "It’s a big swing because the other option is going down a goal. But other than that, every time you get a power play, you’re trying to score. So, it’s not that different, but obviously it was a big swing.”

AP NHL: https://apnews.com/hub/stanley-cup and https://apnews.com/hub/nhl

Carolina Hurricanes goaltender Frederik Andersen (31) stops the puck during the third period in Game 2 of the NHL hockey Stanley Cup Final series against the Vegas Golden Knights in Raleigh, N.C., Thursday, June 4, 2026. (AP Photo/Karl DeBlaker)

Carolina Hurricanes goaltender Frederik Andersen (31) stops a shot byf Vegas Golden Knights' Ivan Barbashev (49) during the third period in Game 2 of the NHL hockey Stanley Cup Final series in Raleigh, N.C., Thursday, June 4, 2026. (AP Photo/Karl DeBlaker)