June 5 comments and the market reaction to stronger-than-expected U.S. May payrolls underscored fading expectations for near-term Federal Reserve easing and pressure on AI stocks, gold, and silver.
Stronger-than-expected U.S. May nonfarm payrolls and hiring acceleration this spring weakened the case for near-term Federal Reserve rate cuts, according to June 5 remarks from Nick Timiraos. He said the payrolls report gives Fed officials more support as they worry inflation remains too high and interest rates may be too low, though it does not settle debate over possible later-year hikes. Markets reacted by selling heavily owned AI and technology stocks and pressuring gold and silver as investors concluded the Fed may keep rates higher for longer.