Wall Street stocks close slightly lower; jobs data strong but rates still high
Nonfarm Payrolls data exceeds estimates
GameStop slides as 'Roaring Kitty' returns to YouTube
Nvidia dips with market cap back below $3 trillion
Lyft gains after forecasting annual growth in bookings
Updates to 4:10 PM
By Chibuike Oguh
NEW YORK, June 7 (Reuters) -Wall Street stocks ended slightly lower onFriday in choppy trading after stronger-than-expected U.S. jobs data pointed to a robust economy but prompted worries the Federal Reserve may wait longer to cut interest rates than many investors had hoped.
The U.S. economy generated about 272,000 jobs in May, far more than the 185,000 analysts had forecast, according to a Labor Department report. The unemployment rate inched up to 4%.
The benchmark S&P 500 .SPX slipped immediately after the report while U.S Treasury yields climbed as traders slashed bets on a September rate reduction. The index recovered and briefly hit a fresh intraday record high as investors noted the data pointed to underlying economic health.
It finished slightly lower, with the utilities .SPLRCU, materials .SPLRCM, and communication services .SPLRCL stocks among the biggest drag. Financials .SPSY and technology .SPLRCT advanced ahead of others.
For the week, the S&P 500 gained 1.32%, Nasdaq rose 2.38%, and the Dow added 0.29%.
"This tells you there's certainly not going to a cut in the short term, and with the bond yields going back up it's putting a lot of pressure on the risk-on trade, which is probably small caps," said Sandy Villere, portfolio manager at Villere & Co in New Orleans.
"It's just a function of interest rates and maybe a little higher for longer, and people have to recalibrate for that type of environment," he added.
Traders now see a 56% chance of a September rate reduction, according to the CME's FedWatch tool. Investors will eye U.S. inflation data next week and the Federal Reserve's two-day policy meeting, which ends on June 12.
"No one expects the Fed to cut (rates next week), but will they open the door for a cut as soon as September is the big question on everyone's mind," said Ryan Detrick, chief market strategist at the Carson Group, adding he still sees a September reduction on the table.
The Dow Jones Industrial Average .DJI fell 87.18 points, or 0.22%, to 38,798.99, the S&P 500 .SPX lost 5.97 points, or 0.11%, to 5,346.99 and the Nasdaq Composite .IXIC lost 39.99 points, or 0.23%, to 17,133.13.
GameStop GME.N slumped 39% involatile trading just as stock influencer "Roaring Kitty" kicked off his first livestream in three years. The gaming retailer had announced a potential stock offering and a drop in quarterly sales.
Other so-called meme stocks, includingAMC Entertainment AMC.N and Koss Corp KOSS.O, fell 15.1% and 17.4%, respectively.
Nvidia NVDA.O slipped, on track to extend the previous session's losses, with its valuation again dipping below the $3 trillion mark.
Lyft LYFT.O shares rose 0.6%, following a forecast of 15% annual growth in its gross bookings through 2027 after markets closed on Thursday.
Declining issues outnumbered advancers by a 2.72-to-1 ratio on the NYSE. On the Nasdaq, 1,177 stocks rose and 3,064 fell as declining issues outnumbered advancers by a 2.6-to-1 ratio.
The S&P 500 posted 17 new 52-week highs and 5 new lows while the Nasdaq Composite recorded 34 new highs and 149 new lows.
Total volume of shares traded across U.S. exchanges was about 10.75 billion, compared with the 12.7 billion average over
the last 20 trading days.
The Fed's broad projection range The Fed's broad projection range https://reut.rs/3UMkU7m
Reporting by Chibuike Oguh in New York; additional reporting by Lisa Mattackal and Johann M Cherian in Bengaluru; Editing by Pooja Desai and David Gregorio
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