US stocks experienced a downturn on Friday, with the Dow Jones Industrial Average closing down 1.07% at 40,320.42, a loss of over 400 points. The NASDAQ and S&P 500 also fell, registering declines of 2.61% to 16,680.93 and 1.80% to 5,404.31, respectively.
This downward trend was evident across various sectors, with communication services shares taking the hardest hit, dropping 2.8%. In contrast, consumer staples shares saw a more modest decline of just 0.1%.
The day’s trading saw a mix of gains and losses among individual companies, driven by factors like earnings reports and economic data.
Notable Gains:
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BloomZ Inc. (BLMZ):
Shares soared 113% to $1.7250 after the company announced a joint entertainment venture with CrossVision.*
Wheeler Real Estate Investment Trust (WHLR):
Shares surged 119% to $9.08 following a favorable court ruling for the company and its subsidiary, Cedar Realty Trust.*
Argan, Inc. (AGX):
Shares climbed 25% to $89.22 following the release of better-than-expected second-quarter financial results.
Notable Losses:
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Braze, Inc. (BRZE):
Shares plummeted 18% to $36.14 after the company reported its quarterly financial results.*
Planet Labs PBC (PL):
Shares fell 27% to $1.8050 after the company’s second-quarter sales results fell short of expectations. Needham maintained a Buy rating on the stock but lowered its price target from $7 to $5.*
Genesco Inc. (GCO):
Shares dropped 12% to $26.01 after the company released its second-quarter earnings.
Commodities
Oil prices declined 2% to $67.74, while gold saw a more moderate drop of 0.8%, closing at $2,523.00. Silver and copper also traded lower, with silver down 3% to $28.22 and copper down 1.7% to $4.0665.
Global Market Sentiment
European markets closed lower, mirroring the trend in the US. The Eurozone’s STOXX 600 fell 1.07%, Germany’s DAX dropped 1.1483%, and France’s CAC 40 closed 1.07% lower. Spain’s IBEX 35 Index and London’s FTSE 100 also saw declines of 0.89% and 0.73%, respectively.
The Eurozone’s second-quarter GDP grew by 0.2% compared to the previous quarter, and the number of employed persons in the region increased by 0.2% during the three months ending in June.
Asian markets also closed lower on Friday, with Japan’s Nikkei 225 falling 0.72%, China’s Shanghai Composite Index dropping 0.81%, and India’s BSE Sensex declining 1.24%. India’s foreign exchange reserves surged to $684 billion as of August 30, 2024.
US Economic Data
The US economy added 142,000 jobs in August, a slight increase from the revised 89,000 gain in July but falling short of market estimates of 160,000. The unemployment rate fell to 4.2% in August from 4.3% the previous month. Average hourly earnings for all employees rose by 0.4% to $35.21 in August, compared to a 0.2% gain in July.
The number of active U.S. oil rigs remained unchanged at 483 this week, according to Baker Hughes Inc.
