The US stock market suffered its worst losses in eight months, driven by a 2.6% drop in the S&P 500, amid significant sell-offs of technology stocks and concerns over a potential interest rate hike. This decline followed the release of strong employment data, which indicated that US employers added 172,000 jobs in May, significantly exceeding the expected 80,000. The Dow Jones Industrial Average fell 1.4%, while the Nasdaq composite plummeted by 4.2%. Major tech companies, including Nvidia, Google-parent Alphabet, and Meta, faced substantial losses, with Nvidia dropping 6.2% and Micron Technology experiencing a 13.3% decline. The surge in US Treasury yields, particularly the two-year note reaching a 15-month high, reflects heightened expectations for Federal Reserve rate hikes. Additionally, the ongoing conflict in the Middle East is exacerbating inflationary pressures, complicating the Fed's policy decisions as it prepares for its upcoming meeting under new chair Kevin Warsh.