Nasdaq drops more than 2% to lead US stocks lower as the major indexes return to weekly losses

• US stocks dropped Friday following a stronger-than-expected jobs report.
• The Nasdaq lost more than 2% and the Dow Jones Industrial Average shed over 300 points.

US stocks skidded lower on Friday, with the tech-heavy Nasdaq dropping more than 2% following a stronger-than-expected jobs report.

US nonfarm payrolls showed an increase of 390,000 jobs in May, beating the 328,000 economists had estimated. The signal of labor-market strength highlights that the Fed is unlikely to slow down its pace of rate hikes, dimming the stock market's hopes for a so-called "Fed pause".

Each of the three major indexes capped off a losing week to start June, following last week's gain.

Here's where US indexes stood as the market closed 4:00 p.m. on Friday:

• S&P 500: 4,108.44, down 1.64%

• Dow Jones Industrial Average: 32,898.91, down 1.05% (349.37 points)

• Nasdaq Composite: 12,012.73, down 2.47%

Fundstrat recommended investors buy mega-cap tech stocks as Nasdaq valuations plunge to depths not seen since the end of the dot-com bubble. "Nasdaq 100 is cheaper today than at the absolute 70-year low of 2003. Yup, markets crashed worse than dot-com," Fundstrat's Tom Lee said.

Lumber prices continue to drop as looming Fed rate hikes put pressure on the housing market. Fed Vice Chair Lael Brainard told CNBC said it is "very hard to see the case" to pause its interest rate hikes until inflation is tamed.

Meanwhile, Goldman Sachs' head of energy research said Friday that President Biden visiting Saudi Arabia won't bring a long-term solution to the energy crisis because the US faces structural shortages. It could help in the near-term, but the remedy isn't sustainable.

Russia will likely lose its relevance in OPEC+ as sanctions continue to weigh on oil production, according to a top energy analyst. In his view, Moscow may fade as a major global oil player in the world.

A top Beijing official said China's yuan could strengthen against the dollar moving forward, as the currency will see less volatility while US Fed policy could simultaneously weaken the dollar.

Oil moved higher, with West Texas Intermediate up 2.84% to $120.19 a barrel. Brent crude, the international benchmark, jumped 3.04% to $121.19 a barrel.

Gold slipped 0.98% to 1,853.20 per ounce. The 10-year Treasury yield rose 0.42 basis points to 2.955%.

Bitcoin moved lower 2.15% to $29.542.40.