U.S. employers announce 97,006 job cuts in May, rising 16% M/M

U.S. employers announced 97,006 job cuts in May, up 16% month-over-month and 3% year-over-year, the highest May figure since 2020 and the third straight monthly rise, Challenger, Gray & Christmas reported. Cuts are concentrated in technology (where AI is now the leading reason cited), with transportation and health care also up while services eased. Hiring plans are slightly higher year-on-year but remain below prepandemic levels across most industries. The deterioration in labor-force adjustments, particularly in tech driven by AI-related restructuring, is a net negative for risk sentiment and could pressure the US SP 500 and other equity benchmarks, increasing near-term volatility and weighing on sector leadership tied to tech hiring trends.