(Reuters) – The New York Stock Exchange ended slightly lower on Friday, as the robustness of the US labor market raised doubts about the timing of rate cuts from the Federal Reserve (Fed).

The Dow Jones index fell 0.24%, or 91.88 points, to 38,794.29 points. The broader S&P-500 lost 7.01 points, or 0.13%, to 5,345.95 points.

The Nasdaq Composite fell 42.79 points (-0.25%) to 17,130.33 points.

Over the week, the S&P 500 gained 1.32%, the Nasdaq advanced 2.38% and the Dow Jones gained 0.29%. The Russell 2000 small-cap index fell 2.02%.

The surprise of the last session of the week came from the publication of the monthly report of the US Department of Labor, which revealed that the economy created more jobs than expected in May in the United States, while the pace wage increases there have progressed more than expected.

The S&P 500 index reacted immediately after the report was released and U.S. Treasury yields climbed as analysts reduced their bets on a September rate cut.

The index then rallied and briefly hit an intraday record as investors noted that the data revealed underlying economic health.

“This indicates that there probably won’t be any reduction in the near term, and with bond yields rising, it puts a lot of pressure on the risk trade, which is probably in small caps,” said Sandy Villere, portfolio manager at Villere & Co in New Orleans.

“It just depends on interest rates and maybe they’ll stay a little bit higher for longer, and people need to recalibrate for that type of environment,” he added.

Analysts now estimate a 56% chance of a rate cut in September, according to the CME’s FedWatch tool. Investors will be watching US inflation data next week and the Federal Reserve’s policy meeting, which ends on June 12.

“No one expects the Fed to cut (rates next week), but the big question on everyone’s mind is whether it will open the door to a cut as early as September,” Ryan said. Detrick, chief market strategist at Carson Group.

In terms of values, Gamestop collapsed (-39.38%) during volatile trading, just as stock market influencer “Roaring Kitty” launched its first live broadcast in three years. The video game distributor also reported a greater than expected drop in its turnover in the first quarter.

Semiconductor manufacturer Nvidia finished stable (-0.09%) as its valuation fell back below the $3,000 billion mark, behind that of Apple.

(Writing by Chibuike Oguh in New York, with contributions from Lisa Mattackal and Johann M Cherian in Bangalore; Kate Entringer)

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