The August jobs report triggered a wave of selling across financial markets on Friday, as investors reacted to slower-than-expected hiring numbers. The report, which showed the U.S. economy adding 142,000 nonfarm jobs in August, missed analysts’ forecasts of 160,000 and fueled concerns about a weakening labor market.
The news sent major indices tumbling, with the Dow Jones Industrial Average, S&P 500, and Russell 2000 all dropping over 1% by midday trading in New York. The Nasdaq 100 took the biggest hit, losing over 5% for the week and heading for its worst performance since September 2022. Semiconductor stocks bore the brunt of the decline, with the iShares Semiconductor ETF SOXX falling nearly 5%. Nvidia Corp. NVDA, a chipmaker giant, saw its stock plunge over 4%, extending its weekly loss to 14% and putting it on track for its steepest decline since October 2022.
Investors opted to move away from equities and into cash, pushing the U.S. dollar higher despite the weaker-than-expected jobs data. In the bond market, short-term Treasury yields tumbled, inverting the yield curve after two years of inversion. The two-year Treasury yield fell below the 10-year, indicating a shift in economic outlook.
Commodities also took a hit, with gold losing 0.9%, silver plunging 3.1%, and crude oil (WTI) dropping 3% to $66 per barrel, its lowest level since May 2023. Bitcoin BTC/USD also experienced a decline, falling over 3%, as investors shied away from crypto assets amid the broader risk-off sentiment.
Here’s a breakdown of the performance of major U.S. indices and ETFs on Friday:
*
Dow Jones:
Down 1.1% to 40,320.98*
S&P 500:
Down 1.8% to 5,406.64*
Russell 2000:
Down 2.2% to 2,092.33*
Nasdaq 100:
Down 2.7% to 18,424.39*
SPDR S&P 500 ETF Trust (SPY):
Down 1.8% to $539.77*
SPDR Dow Jones Industrial Average (DIA):
Down 1.1% to $404.13*
Invesco QQQ Trust Series (QQQ):
Down 2.7% to $448.38*
iShares Russell 2000 ETF (IWM):
Down 2.2% to $207.31*
Consumer Staples Select Sector SPDR Fund (XLP):
Flat for the day*
Technology Select Sector SPDR Fund (XLK):
Down 3%Among individual stocks, Broadcom Inc. AVGO slumped 9.9%, on track for its worst day since March 2020, following weaker-than-expected guidance. Other stocks that reacted to earnings included Samsara Inc. IOT, up 13%, Guidewire Software Inc. GWRE, up 11.8%, and DocuSign Inc. DOCU, up 3.9%. Super Micro Computer Inc. SMCI plunged over 7% as JPMorgan downgraded its rating from Buy to Neutral and slashed its price target from $950 to $500.
