Updated at 4:15 pm EST
Stocks finished lower Friday, while the dollar extended gains against its global peers, as investors picked-through a key reading of the domestic job markets amid increasing concerns over the pace of growth in the world's biggest economy.
The Dow Jones Industrial Average ended down 348 points, or 1.05%, to 32,899, while the S&P 500 fell 1.64%. The tech-focused Nasdaq lead the day's declines, however, losing 2.47%.
U.S. employers added 390,000 new jobs to the economy last month, according to Friday's May employment report from the Bureau of Labor Statistics, even as hiring begins slows amid growing corporate uncertainty.
"The May Employment Report showed consistency in trend for job creation and wage growth," said Comerica Wealth CIO John Lynch. "Revisions from two prior months showed a slight weakening, though, indicating that market interest rates may prove successful in moderating inflationary pressures well before the Fed fully implements its tightening goals."
"Investors need to see a combination of support from private industry and central banks in the fight against inflation," he added. "Companies can improve logistics to ease supply distribution and the central bank has guided market interest rates higher. Both developments can ease inflationary pressures by reducing demand while limiting margin erosion."
Underlying inflation pressures continue to trouble investors following a record-high reading in Europe this week as well as a chorus of Federal Reserve governors -- including vice chair Lael Brainard -- who feel the central bank needs to hold firm on its path of near-term rate hikes in order to bring down the fastest inflation rates in more than forty years.
The expectation of rate hikes, which has given rise to Treasury bond yields, has also boosted the U.S. dollar to its highest levels in two decades, adding a further headwind to earnings generation for some of world's biggest companies, including Microsoft (MSFT) - , which cautioned yesterday that its current-quarter profits would fall short of forecasts thanks in part to the surging greenback.
The dollar was modestly firmer, rising 0.33% against a basket of its global peers to 102.16, with benchmark 10-year Treasury note yields rising to 2.946%.
In overseas markets, European stocks gave back some of yesterday's gains with a 0.02% decline in late-afternoon trading in Frankfurt the region-wide MSCI ex-Japan index gained 0.38% in a follow-on rally from last night's close on Wall Street.
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A big chunk of the Nasdaq's decline will be tied to Tesla (TSLA) - , which was ended 9.2% lower following a report that suggested CEO Elon Musk is looking to pare around 10% of the carmaker's global workforce.
Apple (AAPL) - shares were also a drag, falling 3.86% after analysts at Morgan Stanley cautioned that the tech giant's App Store revenue is slowing, creating what it called 'downside risk" for services revenue growth over the current quarter.
Micron Technology (MU) - shares, meanwhile, slumped 7.2% after analysts at Piper Sandler cut their rating on the chipmaker to "underweight" from "neutral", while slashing their price target by $20 to $70 a share, citing economic headwinds for PC and smartphone semiconductor sales.
In the pharma space, Turning Point Therapeutics (TPTX) - shares soared 118% after Bristol-Myers (BMY) - agreed to buy the San Diego-based oncology specialists for around $4.1 billion.