TechFlow News, June 6: Stronger-than-expected U.S. nonfarm payroll data for May triggered market concerns over potential Federal Reserve rate hikes this year. On Friday, U.S. AI and technology stocks—previously crowded and highly valued—suffered sharp declines, while gold and silver prices also plunged.
Ryan Detrick, Chief Market Strategist at Carson Group, stated: “The technology and semiconductor sectors posted record gains over the past nine weeks; today, the market’s dam finally broke.”
“The stronger-than-expected jobs report has placed the Fed in a dilemma regarding whether to cut rates for the remainder of this year, and markets responded by selling off the best-performing stocks of the year so far,” said Phil Streible, Chief Market Strategist at Blue Line Futures, adding that some investors liquidated gold holdings to offset losses elsewhere, intensifying downward pressure on precious metals.
Bart Melek, Global Head of Commodity Strategy at TD Securities, noted: “The nonfarm payroll data significantly exceeded market expectations. Given the ongoing Middle East conflict, elevated energy prices, and substantial inflationary pressures, the Fed has virtually no appetite for rate cuts. Against this backdrop, the cost of holding gold is rising.” (Jinshi)
