US stocks fell sharply on Friday as a steep selloff in semiconductor shares rattled markets. The Nasdaq dropped 4.2%, marking its worst session since April 2025, while the S&P 500 lost 2.6%. The Dow Jones declined 1.4% after reaching a record high the previous day. Chipmakers led the retreat, with Broadcom falling more than 7% following a double-digit decline on Thursday. Marvell Technology and Micron Technology plunged about 16% and 13%, respectively, while Intel and AMD lost around 11%. The weakness came after stronger-than-expected jobs data showed the US economy added 172,000 positions in May, far exceeding forecasts. The report pushed Treasury yields higher, with the 10-year yield rising above 4.5% and the 30-year yield topping 5%, fueling concerns that elevated borrowing costs could weigh on economic growth and investment. For the week, the S&P 500 fell more than 2%, while the Nasdaq lost around 4.7%.

WTI crude oil futures slid 3% to around $90.3 per barrel on Friday as markets focused on signs of weaker global demand and the lack of a breakthrough in negotiations between Washington and Tehran. Although President Trump maintained that discussions with Iran are progressing, tensions remain elevated, with disagreements over Lebanon continuing to complicate efforts to secure a broader agreement. Concerns about consumption also weighed on prices after Chinese crude imports fell to their lowest level in ten years, reflecting reduced refinery activity and softer demand. Several analysts now expect global oil demand growth to slow significantly this year. Earlier gains driven by fears of prolonged disruptions in the Strait of Hormuz have faded somewhat, though uncertainty over the region remains high. In Oman, operations at the Mina Al Fahal export terminal were briefly disrupted by an explosion before resuming.

Any potential break from the prolonged impasse between Iran and the US will dictate global markets next week, as elevated energy prices continue to make central banks heed inflationary risks. The US is due to release its consumer and producer inflation figures, the final price gauge before this month's Federal Reserve decision, in addition to existing home sales and the trade balance. Likewise, trade data and inflation prints are also awaited in China. Meanwhile, the European Central Bank and the Bank of Canada will set their monetary policy. The UK will release April's GDP and join Germany in posting trade balances and industrial production. Elsewhere, Australia will release industry leading indicators and Brazil, Mexico, and Russia should unveil their CPIs. On the corporate front, SpaceX will undergo what is likely to be the largest IPO on record. Additionally, OPEC+ will vote on the cartel's output quota in their first meeting without the UAE.

Gold prices dropped below $4,370 per ounce on Friday, reaching their lowest level of 2026 and heading for a weekly decline of nearly 4%, as a stronger-than-expected US jobs report and ongoing Middle East uncertainty heightened inflation and interest rate concerns. The May nonfarm payroll report revealed the US economy added 172,000 jobs, significantly above the forecasted 85,000, while the unemployment rate held steady at 4.3% and annual wage growth moderated to 3.4%, in line with expectations. This prompted investors to increase bets on a Federal Reserve interest rate hike, with markets now pricing in a quarter-point increase by year-end. Meanwhile, investors closely monitored developments in the Middle East, where US President Donald Trump stated that peace negotiations were nearing their final stage. However, Iran’s Foreign Minister dismissed any meaningful progress, and Iran-backed Hezbollah rejected a US-mediated ceasefire proposal.

The yield on the US 10-year Treasury note rose about 6bps to 4.54% on Friday after a stronger-than-expected jobs report reinforced expectations that the Fed may need to raise interest rates again, with markets now almost fully pricing in a quarter-point hike by year-end. The US economy added 172,000 jobs in May, well above forecasts of 85,000, while employment figures for March and April were revised higher. The unemployment rate remained unchanged at 4.3%, and average hourly earnings rose 0.3% on the month, in line with expectations. The report reinforced the view that the labour market remains resilient, with job gains appearing broadly based across sectors. Against a backdrop of elevated inflationary pressures and inflation continuing to run above the Fed's target, the data strengthened the case for monetary tightening later this year. Meanwhile, the 2-year Treasury yield, which is more sensitive to changes in interest rate expectations, rose by about 10bps to 4.16%.

Employment in Canada rose by 88,000 from the previous month in May 2026, the most since December 2024 and well above market expectations for a gain of 10,000. The rebound followed a cumulative net loss of 112,000 jobs during the first four months of the year. Employment increased among both private-sector workers (+56,000) and public-sector employees (+20,000). Full-time employment climbed by 154,000, while part-time positions declined by 66,000 and self-employment was little changed. Job gains were concentrated in construction (+27,000), information, culture and recreation (+19,000), transportation and warehousing (+19,000), and accommodation and food services (+17,000). In contrast, wholesale and retail trade shed 35,000 jobs. Regionally, employment increased in Ontario, British Columbia, Alberta, and Prince Edward Island, while Saskatchewan recorded a decline. The employment rate rose 0.2 percentage points to 60.7%.