QtrendsUS jobs data reignited rate-hike fears, triggering a selloff in Hong Kong and Asian AI stocks. Geopolitical tensions escalated as Iran struck Israel and Israel struck Lebanon, shattering a ceasefire and sending oil prices surging. Investors rotated out of tech into low-volatility and defensive stocks. The US labor market added 172,000 jobs in May, extending a three-month rebound while wage gains softened. Scott Pelley publicly condemned CBS News leadership under Bari Weiss in a scathing New York Times interview.
Hong Kong and other Asian markets fell sharply as strong US jobs data fueled expectations that the Federal Reserve would keep interest rates high. The AI-driven stock rally that had powered Asian markets began to unravel, with investors fleeing the sector. Uncertainty over Stock Connect access to mainland Chinese AI listings added to the headwinds.
Geopolitical risk returned with force as Iran launched strikes against Israel and Israel struck Lebanon, breaking a fragile ceasefire. Oil prices surged more than $2 per barrel, and OPEC Plus moved to boost output. Asian stocks sank while US futures attempted a rebound, but markets remain on edge over a potential Hormuz Strait disruption.
As technology stocks tumbled on rate fears and geopolitical turmoil, investors pivoted to low-volatility and defensive names. MarketWatch highlighted ten low-volatility stocks for portfolio protection, while Indian IT firms Infosys and TCS faced pressure from the Nasdaq selloff. The rotation marks a sharp shift in market sentiment.
Veteran CBS correspondent Scott Pelley publicly excoriated the network and executive Bari Weiss in a New York Times interview, calling the organization incompetent. He accused Weiss of mismanagement and called for her removal. The interview drew widespread media attention, with Forbes and CNN both covering the fallout.
The US economy added 172,000 jobs in May, marking the third straight month of employment gains and extending the labor market rebound. The unemployment rate held steady at 4.3%. However, wage growth softened and likely failed to keep pace with rising prices, leaving persistent economic frustration among American workers.