NEW YORK — U.S. stocks opened lower on Friday after a stronger-than-expected May jobs report raised investor concerns about potential Federal Reserve interest rate hikes.
The Nasdaq Composite fell in early trading, with technology shares among the decliners. The S&P 500 and Dow Jones Industrial Average also opened lower or flat, according to market data.
The Labor Department reported that employers added 172,000 jobs in May, more than double the roughly 80,000 to 85,000 forecast by economists. Unemployment held steady at 4.3 percent. The department also revised upward job gains for prior months.
The stronger labor market data sent Treasury yields higher. The 10-year Treasury yield rose above 4.5 percent, while the two-year yield climbed above 4.1 percent.
"Markets are pricing in a more hawkish Federal Reserve," one trader noted on a financial news network shortly after the report's release.
The data comes as investors monitor the central bank's policy path amid ongoing economic resilience. Strong hiring can signal a robust economy but also fuel inflation concerns, potentially delaying rate cuts or prompting tighter policy.
Trading volume was active in the morning session as participants adjusted positions. Technology and growth stocks, which are sensitive to interest rate expectations, faced particular pressure.
Earlier in the week, major indexes had been near record levels, supported by corporate earnings and sector momentum. The jobs report introduced a shift in sentiment for the final trading day of the week.
Details on sector performance and closing levels were still developing as markets traded. Economists and Fed watchers will continue to assess the implications for monetary policy in coming days.
The Bureau of Labor Statistics provided the employment figures. Market reactions were based on real-time trading data from major exchanges.
