Stock market today: US indexes drop after big May jobs report resets rate-cut outlooks

• US stocks dropped on Friday as investors digested the May jobs report.
• A strong payroll report pushed out expectations of a Fed interest-rate cut later this year.
• "Today's data undermines the message that other recent economic data have been giving of a cooling U.S. economy."

US stocks ended Friday slightly lower but finished the week higher by more than 1% following a May jobs report that came in much hotter than expected.

Data showed 272,000 jobs were added to the economy last month, well ahead of economist estimates of about 180,000.

The report also saw the unemployment rate rise to 4.0% from 3.9%, suggesting some weakness in the labor market to offset the stronger-than-expected payroll figures.

Meanwhile, average hourly earnings rose to 4.1% from 3.9% annually, which revived some concern about inflation and pushed out the likelihood of a Fed interest rate cut to December from September.

According to the CME FedWatch Tool, there's only a 47% chance of an interest rate cut in September, compared to a 55% chance before the jobs report was released.

"Today's data undermines the message that other recent economic data have been giving of a cooling U.S. economy, and slams the door shut on a July rate cut," said Seema Shah, Principal Asset's chief global strategist. "We still expect the Fed to cut rates in September but another set of prints like today's would likely also take that off the table."

Here's where US indexes stood at the 4 p.m. closing bell on Friday:

• S&P 500: 5,346.99, up 0.1%
• Dow Jones Industrial Average: 38,798.99, down 0.2% (87 points)
• Nasdaq Composite: 17,133.12, down 0.2%

Here's what else happened today:

• Keith Gill AKA Roaring Kitty launched his first YouTube live stream in more than three years, but GameStop stock still plunged more than 40%.

• Elon Musk's $56 billion pay package will likely see overwhelming approval from its shareholders, according to Dan Ives.
• GameStop stock plunged 20% after the video game retailer pre-announced lackluster earnings and filed a prospectus to sell more stock.
• Bitcoin is on the verge of a massive technical breakout that could send the cryptocurrency to $100,000, according to a technical analyst.
• Here are three things homebuyers should do to hack the unaffordable housing market.

In commodities, bonds, and crypto:

• West Texas Intermediate crude oil dropped 0.34% to $75.29 a barrel. Brent crude, the international benchmark, was lower by 0.60% to $79.39 a barrel.
• Gold sold off 3.38% to $2,310.00 per ounce.
• The 10-year Treasury yield jumped 14 basis points to 4.43%.
• Bitcoin dropped 2.20% to $69,216.