FX.co ★ US Stocks Swing Lower

In the latest market developments, U.S. stocks retreated on Friday as investors evaluated the implications of a weakening labor market on economic growth and interest rate trajectories. The S&P 500 and the Dow Jones Industrial Average each declined by approximately 0.7%, while the Nasdaq 100 experienced a smaller dip of 0.3%, influenced by a mixed performance in the technology sector. The U.S. economy added a mere 22,000 jobs in August, significantly underperforming the anticipated 75,000, with the unemployment rate climbing to 4.3%, the highest since 2021, aligning with economists' expectations. This data suggests a deceleration in the labor market, bolstering predictions that the Federal Reserve may reduce interest rates later this month. Current market sentiment indicates an expectation of approximately 65 basis points of rate cuts for 2025. Noteworthy stock movements included Nvidia tumbling over 4% and AMD dropping 6.5% following President Trump's announcement of a potential "substantial" tariff on semiconductors. The banking sector also faced challenges, with major institutions such as JPMorgan, Wells Fargo, and US Bancorp seeing declines exceeding 2.5%. Conversely, Broadcom enjoyed a 10% surge after reporting favorable earnings and announcing its collaboration with OpenAI.