{"id":50493,"date":"2024-09-06T14:53:53","date_gmt":"2024-09-06T14:53:53","guid":{"rendered":"https:\/\/www.pantheregroup.com\/2024\/09\/06\/u-s-stocks-move-sharply-lower-as-jobs-data-adds-to-economic-worries\/"},"modified":"2024-09-06T14:53:53","modified_gmt":"2024-09-06T14:53:53","slug":"u-s-stocks-move-sharply-lower-as-jobs-data-adds-to-economic-worries","status":"publish","type":"post","link":"https:\/\/www.pantheregroup.com\/2024\/09\/06\/u-s-stocks-move-sharply-lower-as-jobs-data-adds-to-economic-worries\/","title":{"rendered":"U.S. Stocks Move Sharply Lower As Jobs Data Adds To Economic Worries"},"content":{"rendered":"
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Stocks have moved sharply lower during trading on Friday, with the major averages all moving to the downside after turning in mixed performances in the two previous sessions. The tech-heavy Nasdaq has shown a particularly steep drop, tumbling to its lowest intraday level in well over three weeks.<\/p>\n

In recent trading, the major averages have fallen to new lows for the session. The Nasdaq is down 325.26 points or 1.9 percent at 16,802.40, the S&P 500 is down 65.37 points or 1.2 percent at 5,438.04 and the Dow is down 233.22 points or 0.6 percent at 40,522.53.<\/p>\n

The sell-off on Wall Street comes amid concerns about the outlook for the U.S. economy<\/span> after the Labor Department released a closely watched report showing employment rose by less than expected in the month of August.<\/p>\n

The Labor Department said non-farm payroll employment climbed by 142,000 jobs in August compared to economist estimates for an increase of 160,000 jobs.<\/p>\n

The report also said the increases in employment in June in July were downwardly revised to 118,000 jobs and 89,000 jobs, respectively, reflecting a net downward revision of 86,000 jobs.<\/p>\n

Meanwhile, the Labor Department said the unemployment rate edged down to 4.2 percent in August from 4.3 percent in July. <\/p>\n

The modest decrease, which was in line with estimates, came after the unemployment rate reached its highest level since October 2021.<\/p>\n

While the data is seen as increasing the chances of a 50 basis point interest rate cut by the Federal Reserve later this month, traders seem worried the central bank may have waited too long to prevent the economy from slipping into a recession.<\/p>\n

According to CME Group’s FedWatch Tool, there is a 45 percent chance of a half point rate cut and a 55 percent chance of a quarter point rate cut.<\/p>\n

“The large downward revision to payroll gains in the prior two months and the continued narrow concentration in payroll advances underscore that the labor market is losing steam rather quickly,” said Nationwide Chief Economist Kathy Bostjancic.<\/p>\n

Sector News<\/p>\n

Semiconductor stocks are turning in some of the market’s worst performances on the day, with the Philadelphia Semiconductor Index plunging by 3.7 percent to its lowest intraday level in almost a month.<\/p>\n

Broadcom (AVGO) has helped lead the sector lower, plummeting by 3.7 percent after reporting better than expected fiscal third quarter results but providing disappointing revenue guidance for the current quarter.<\/p>\n

Considerable weakness is also visible among computer hardware stocks, as reflected by the 1.9 percent slump by the NYSE Arca Computer Hardware Index.<\/p>\n

The index has also fallen to a nearly one-month intraday low, as Super Micro Computer (SMCI) is posting a steep loss after JPMorgan downgraded its rating on the server producer to Neutral from Overweight.<\/p>\n

Networking, retail and gold stocks are also seeing notable weakness, while housing stocks are among the few groups bucking the downtrend amid optimism about lower interest rates.<\/p>\n

Other Markets<\/p>\n

In overseas trading, stock markets<\/span> across the Asia-Pacific region moved mostly lower during trading on Friday. Japan’s Nikkei 225 Index declined 0.7 percent, while China’s Shanghai Composite Index slumped by 0.8 percent.<\/p>\n

The major European markets have also moved to the downside on the day. While the German DAX Index is down by 0.4 percent, the U.K.’s FTSE 100 Index is down by 0.2 and the French CAC 40 Index is down by 0.1 percent.<\/p>\n

In the bond market, treasuries are extending the upward trend seen over the past few sessions. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 4.4 basis points at 3.689 percent. <\/p>\n<\/p>\n

Business News<\/p>\n<\/div>\n