Traders work on the floor of the New York Stock Exchange during afternoon trading on September 5, 2024.
Michael M. Santiago | Getty Images
of S&P 500 Stocks fell on Friday and are heading for their worst week since March 2023 as investors assessed weaker-than-expected August jobs data and sold off tech shares.
The overall index fell 1.4%. Nasdaq Composite Index It fell 2.2%. Dow Jones Industrial Average It fell 330 points, or 0.8 percent.
Big tech stocks fell as investors continued to sell off riskier assets amid growing growth concerns, with Amazon and Alphabet falling more than 2%, while Microsoft and Meta Platforms each fell 1%. Broadcom The company fell 10% even though its fourth-quarter sales were in line with expectations. Other semiconductor stocks followed suit, with Nvidia, Advanced Micro Devices and Marvell Technology each falling more than 4%. The iShares Semiconductor ETF fell 4%.
The release of August’s jobs report further fueled concerns about a slowing labor market. A series of weak labor reports has raised concerns about the health of the economy, spooking markets and reducing risk appetite. Nonfarm payrolls rose by 142,000, beating the 161,000 increase expected by economists surveyed by Dow Jones. However, the unemployment rate fell slightly to 4.2%, as expected.
“The August jobs report signals rising risks as the labor market clearly softens, and the Fed will need to step in to stem tail risks,” said Sonu Varghese, global macro strategist at Carson Group. “The report locks in a September rate cut, but the big question is whether the Fed will take bold steps (such as a 50 basis point cut) to get ahead of rising risks.”
Many investors are optimistic that the Fed will cut interest rates by at least a quarter of a percentage point at the end of its September policy meeting later this month. Nearly half of traders are now pricing in a 50 basis point cut, according to CME Group’s FedWatch tool.
Friday’s data came on the heels of a volatile week for the stock market, with the S&P 500 down 4% and on track for its worst week this year, the Nasdaq down 5.4% and on track for its worst week since April, and the Dow Jones Industrial Average down 2.6%.
