US equity markets ended the week significantly lower, as a strong May jobs report on Friday triggered a broad selloff driven by rising expectations that the Federal Reserve may raise interest rates later this year. The S&P 500 fell 2.5% for the week as mega-cap technology names that had powered the index to record highs earlier in the week reversed course sharply. Treasury yields rose across the curve, with the front-end leading gains as the stronger-than-expected labor market data reinforced concerns that inflation, already elevated in part due to the ongoing conflict in the Middle East, may prove more persistent. WTI crude oil rose 3.6% on the week, supported by continued disruptions to supply through the Strait of Hormuz. The May Nonfarm Payrolls report showed the U.S. economy added 172,000 jobs—nearly double the consensus estimate of 88,000—while the unemployment rate held steady at 4.3%, marking the strongest three-month advance in hiring in more than two years. Taken together, last week’s data painted a picture of a resilient but inflation-pressured economy, leaving investors navigating a more uncertain rate environment just as the AI-driven equity rally showed signs of fatigue.