Berliner Boersenzeitung - Blockbuster US job gains ruffle Wall Street

Oil prices retreated meanwhile despite continued clashes in Lebanon, with no apparent progress in reaching a peace deal between Iran and the United States that would open up energy exports through the Strait of Hormuz.

Data showed the US economy added 172,000 jobs in May, far more than the 80,000 expected by economists polled by Dow Jones Newswires and The Wall Street Journal.

April figures were also revised higher, to 179,000 from 115,000, indicating the US economy is resilient as rising energy costs from the Mideast war begin to hit consumers and businesses.

While the figures are "good news for the US economy, borrowers and investors may feel differently," said eToro analyst Bret Kenwell.

In a best scenario, he said, a rapid resolution of the conflict that allows oil prices to drop would allow the US Federal Reserve to ride out the recent spike in inflation.

"However, if policymakers even start talking about rate hikes or taking a more hawkish posture, that could throw cold water on the recent stock market surge," Kenwell said.

Yields on US Treasury bonds rose in response to the data as investors anticipated higher rates from the US Federal Reserve.

The dollar rose against main rivals as well.

"This report adds to pressure on the Fed to drop its easing bias, but it may not trigger a rush to price in rate hikes anytime soon," said Kathleen Brooks at XTB, noting that markets still price a less than 40 percent chance of a rate hike this year.

Wall Street opened mostly lower, but the Dow still gained enough in initial trading to set a record high before sagging into the red.

The Nasdaq Composite fell one percent as investor jitters over AI investments returned.

After pushing equity markets to record highs this year, technology firms are facing selling pressure on concerns that the eye-watering sums pumped into artificial intelligence may have been overdone and stock valuations are too high.

The so-called Magnificent Seven, which includes AI players Nvidia, Google-parent Alphabet and Meta, were mostly lower.

US chipmaker Broadcom also sparked concern this week after its revenue forecast for the third quarter undershot expectations.

Tech tremors also hit Asian markets.

South Korea's tech-heavy stock market tanked almost seven percent at one point Friday, before ending down 5.5 percent.

The Nikkei in Tokyo was off more than one percent, matching Thursday's retreat.

The losses come as investors anticipate the coming IPO by Elon Musk's SpaceX, which is aiming to raise $75 billion in the world's biggest initial public offering.

"Broadcom's revenue miss sparked profit-taking across the semiconductor sector and gave investors a reason to pause after the recent AI-driven rally," said City Index's Fiona Cincotta.

She added that "Broadcom's results suggest investor expectations may have run ahead of fundamentals."

European stock markets were mixed despite official data showing a contraction in eurozone economic growth in the first quarter, which was dragged down by a sharp decline in Irish output.

- Key figures at around 1330 GMT -

Brent North Sea Crude: DOWN 0.7 percent at $94.37 a barrel

West Texas Intermediate: DOWN 1.3 percent at $91.86 a barrel

New York - DOW: UP less than 0.1 percent at 51,585.58

New York - S&P 500: DOWN 0.6 percent 7,539.70

New York - Nasdaq: DOWN 1.0 percent at 26,557.95

London - FTSE 100: UP 0.4 percent at 10,398.15 points

Paris - CAC 40: UP 0.1 percent at 8,255.17

Frankfurt - DAX: DOWN 0.2 percent at 24,891.53

Tokyo - Nikkei 225: DOWN 1.3 percent at 66,588.12 (close)

Hong Kong - Hang Seng Index: DOWN 1.2 percent at 24,961.95 (close)

Shanghai - Composite: DOWN 0.7 percent at 4,027.74 (close)

Euro/dollar: DOWN at $1.1584 from $1.1610 on Thursday

Pound/dollar: DOWN at $1.3405 from $1.3423

Dollar/yen: UP at 160.16 yen from 160.03 yen

Euro/pound: DOWN at 86.42 pence from 86.50 pence

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(A.Berg--BBZ)