AI Summary
5 min readWhy Stocks Are Diving After a Strong May Jobs Report
The May jobs report came in much stronger than expected — 172,000 jobs added, unemployment steady at 4.3% — and that good news for workers is bad news for stock markets. The NASDAQ had its worst day of 2026, falling 4.2%, and the S&P 500 lost $1.8 trillion in market cap. The reason: a strong labor market makes the Federal Reserve more likely to raise interest rates than cut them, dashing investor hopes for the rate relief that typically lifts stock prices.
The Jobs Report and the Fed
The Labor Department reported that the U.S. added 172,000 jobs in May, beating analyst expectations, with the unemployment rate holding at 4.3%. WSJ economics reporter Matt Grossman noted that the report also included strong upward revisions to job creation in March and April. "Things are looking really a lot brighter than they were at the start of the year," he said. Hiring broadened across sectors — leisure and hospitality, manufacturing, construction, and local governments all added workers, alongside continued strength in healthcare, social services, and education.
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What you'll learn
- 1 (00:39) **Strong May Jobs Report Complicates Fed Rate Path** - The U.S. added 172,000 jobs in May, beating expectations, with upward revisions for March and April.
- 2 (03:11) **SpaceX IPO Countdown: $3.4 Trillion Revenue Projection by 2040** - Morgan Stanley told top investors it expects SpaceX revenue to reach $3.4 trillion by 2040, driven by its AI business.
- 3 (04:38) **S&P 500 Will Not Fast-Track Mega IPOs, Unlike Nasdaq** - S&P Dow Jones Indices says newly listed companies must wait at least a year for inclusion, diverging from Nasdaq's faster approach.
- 4 (07:07) **Tech Stocks Tumble: Nasdaq Has Worst Day of 2026** - The Nasdaq fell 4.2% today and 4.7% for the week, its worst week in over a year, as the S&P 500 lost $1.8 trillion in market cap.
- 5 (08:52) **Trump Wants New Intel Chief to Fire Large Number of Employees** - President Trump said he wants acting DNI Bill Poulty to begin a major shakeup of the Office of the Director of National Intelligence.
- 6 (09:39) **Local Officials Under Fire for Questionable Government Credit Card Spending** - Watchdogs are flagging small but relatable purchases by officials, from a $264 fish dinner to beer can coolers and ammunition.
- 7 (12:01) **Ukraine's Zelensky Seeks Peace Talks; Putin Refuses** - Zelensky sent his first letter to Putin since the 2022 invasion, offering to meet and end the fighting, but Putin told Russian soldiers to keep fighting.
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Guests on this episode
Show Notes
P.M. Edition for June 5. The U.S. added 172,000 jobs in May, the third month in a row of steady gains. Economics reporter Matt Grossman explains why job-seekers may not be sharing that optimism. Plus, a sharp selloff in tech stocks led the Nasdaq to its worst day of 2026. What’s News in Markets host Imani Moise says investors are worried about higher interest rates and AI demand. And… a $419 hotel tab on a family vacation? DoorDash orders totaling $1,576? Scott Calvert discusses how public watchdogs are blowing the whistle on local officials’ spending, and why taxpayers are so angry about it. Alex Ossola hosts.
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