What Happened?
A number of stocks fell in the afternoon session after a stronger-than-expected May jobs report fueled concerns that the Federal Reserve will keep interest rates elevated.
The U.S. economy added 172,000 nonfarm payroll jobs in May, significantly surpassing economists' expectations of around 85,000, while the unemployment rate held steady at 4.3%. This robust labor market data eases concerns of an economic slowdown but diminishes the likelihood of near-term interest rate cuts by the Federal Reserve.
A prolonged high-interest-rate environment can create headwinds for growth-oriented sectors like technology, as it pressures stock valuations by making future earnings less valuable in the present. As a result, investors recalibrated their expectations for a 'higher-for-longer' rate scenario.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Digital Media & Content Platforms company Rumble (NASDAQ: RUM) fell 8.6%. Is now the time to buy Rumble? Access our full analysis report here, it’s free.
- Traditional Media & Publishing company EchoStar (NASDAQ: SATS) fell 7.8%. Is now the time to buy EchoStar? Access our full analysis report here, it’s free.
- Satellite Telecommunication Services company Viasat (NASDAQ: VSAT) fell 7.9%. Is now the time to buy Viasat? Access our full analysis report here, it’s free.
Zooming In On Rumble (RUM)
Rumble’s shares are extremely volatile and have had 51 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 2 days ago when the stock dropped 5.3% on the news that the combination of rising oil prices, higher Treasury yields, and shifting rate expectations tightened the macro backdrop for corporate clients.
ADP's May payroll print (122,000 jobs added, above the 110,000 consensus) confirmed the labor market remains firm, but the data also pushed rate hike expectations higher, reducing the likelihood of the relief companies had been anticipating.
Adding to the weakness, GitLab announced it would cut approximately 14% of its workforce and exit 22 countries, signaling that enterprise clients continue to manage costs tightly even amid a broader market recovery. In a sector where spending depends on corporate confidence, higher-for-longer rates and geopolitical uncertainty are a direct headwind.
Rumble is up 17.3% since the beginning of the year, but at $7.48 per share, it is still trading 25.4% below its 52-week high of $10.02 from July 2025. Despite the year-to-date gain, investors who bought $1,000 worth of Rumble’s shares 5 years ago would now be looking at only $764.31.
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