How much did Lululemon stock drop?

Lululemon (LULU) shares plunged over 10% after disappointing Q1 earnings and lowered guidance.

How does the jobs report affect interest rates?

The strong jobs report may prompt the Fed to continue raising interest rates to curb inflation, putting pressure on stocks.

Dow Wavers on Surprise Jobs Report; Lululemon Plunges

The Dow Jones Industrial Average dropped Friday after the May jobs report surprised to the upside, fueling rate hike fears. Meanwhile, Lululemon (LULU) shares collapsed more than 10% following weak quarterly results.

June 5, 2026

2 min read

Source: Investor's Business Daily

The Dow Jones Industrial Average wavered on Friday after the May jobs report came in much stronger than expected, reigniting concerns that the Federal Reserve may keep raising interest rates. At the same time, Lululemon Athletica (LULU) plunged over 10% after reporting disappointing first-quarter earnings.

Reasons Behind the Moves

Jobs Report

The Labor Department reported that the U.S. economy added 339,000 jobs in May, well above the consensus estimate of 195,000. The strong labor market data raised the likelihood of further Fed tightening, pressuring major indices.

Lululemon Earnings

Lululemon reported Q1 fiscal 2026 results that missed analyst expectations on both revenue and earnings per share. The company also issued weaker-than-expected guidance for the current quarter, triggering a sharp sell-off.

Broader Context

Markets experienced volatility throughout the week as investors awaited the jobs report and Fed meeting minutes. The Dow had been oscillating before the release but moved decisively lower afterward.

Similar Moves in the Sector

Other retail and athletic stocks also declined, though less severely. Nike (NKE) and Under Armour (UAA) both fell, reflecting broader weakness in the sector.

Frequently Asked Questions

The Dow fell after the May jobs report showed 339,000 jobs added, beating expectations, which raised the likelihood of further Fed rate hikes.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.