FX.co ★ US Stocks Fall on Weak Jobs Data

U.S. stocks ended down on Friday due to weaker-than-anticipated employment figures for August, which raised fears about a slowing economy despite increasing hopes for Federal Reserve rate cuts. The S&P 500 reversed early gains to end 0.3% lower, falling beneath Thursday's record close. The Dow Jones Industrial Average dropped 220 points, while the Nasdaq 100 remained flat. The labor market report revealed the addition of only 22,000 jobs, considerably below the projected 75,000, and the unemployment rate increased to 4.3%, indicating labor market cooling. Traders heightened their expectations for interest-rate cuts, with increased likelihood of a 50 basis points reduction this month. Declines were led by the banking, energy, and industrial sectors, whereas the real estate sector experienced gains due to optimism surrounding rate cuts. Broadcom surged 9.4% following robust revenue forecasts driven by AI advancements. Conversely, Nvidia saw a 2.7% drop and AMD fell by 6.6%, impacted by President Trump's warning of potential tariffs on semiconductors. Lululemon plummeted 18.6% after issuing a second profit warning, and significant banks, like JPMorgan and Wells Fargo, each declined over 2.5%.