By By: StockStory
Publication Date: 2026-06-05 16:40:00
What happened?
Shares of enterprise software giant Oracle (NYSE:ORCL) fell 8% in the afternoon session after a better-than-expected jobs report suggested the Federal Reserve may keep interest rates higher for longer.
The U.S. economy added 172,000 non-farm jobs in May, well above economists’ expectations of around 85,000, while the unemployment rate remained stable at 4.3%. These robust labor market data allay concerns about an economic slowdown but reduce the likelihood of short-term interest rate cuts by the Federal Reserve.
A prolonged high interest rate environment can create headwinds for growth-oriented sectors such as technology as it puts pressure on stock valuations by making future earnings less valuable in the present. As a result, investors have recalibrated their expectations for a “longer-term higher” interest rate scenario.
The stock market overreacts to news and sharp declines can provide good opportunities to buy high-quality stocks. Now it’s time to buy…