Investors showed little enthusiasm for the August jobs report, as the slower-than-expected hiring numbers deepened worries about a softening labor market.
The U.S. economy added 142,000 nonfarm jobs in August, up from July's 89,000 but falling short of the projected 160,000. The unemployment rate edged down by 0.1% to 4.3%, in line with expectations, while wages saw stronger-than-anticipated growth, rising 0.4% month-over-month.
On Friday, markets shifted sharply into risk-off mode, with all major indices dropping over 1% by midday trading in New York.
The CBOE Volatility Index (VIX) spiked over 17% to 23 points. The Nasdaq 100 led the decline, losing over 5% for the week, eyeing its worst performance since September 2022.
Semiconductors dragged down the tech-heavy index. The iShares Semiconductor ETF (NYSE:SOXX) dropped nearly 5%, while Nvidia Corp. (NASDAQ:NVDA) fell more than 4%. The chipmaker giant extended the weekly loss to 14%, on track for its steepest decline since October 2022.
Investors dumped equities and moved into cash as the U.S. dollar strengthened despite weaker-than-expected nonfarm payroll data.
In the bond market, short-term Treasury yields tumbled, bringing the yield curve back to a normal shape after two years of inversion. The two-year Treasury yield fell below the 10-year, signaling a shift in economic outlook.
Commodities took heavy losses across the board. Gold dropped 0.9%, silver plunged 3.1% and crude oil (WTI) slid 3%, reaching $66 per barrel, the lowest since May 2023.
Bitcoin (CRYPTO: BTC) also dropped, losing over 3%, as investors steered clear of crypto assets amid a broad-based decline in risk appetite.
Friday's Performance In Major US Indices, ETFs
| Major Indices | Price | 1-day %chg |
| Dow Jones | 40,320.98 | -1.1% |
| S&P 500 | 5,406.64 | -1.8% |
| Russell 2000 | 2,092.33 | -2.2% |
| Nasdaq 100 | 18,424.39 | -2.7% |
According to Benzinga Pro data:
- The SPDR S&P 500 ETF Trust (NYSE:SPY) was 1.8% lower to $539.77.
- The SPDR Dow Jones Industrial Average (NYSE:DIA) fell 1.1% to $404.13.
- The tech-heavy Invesco QQQ Trust Series (NASDAQ:QQQ) tumbled 2.7% to $448.38.
- The iShares Russell 2000 ETF (NYSE:IWM) fell 2.2% to $207.31.
- The Consumer Staples Select Sector SPDR Fund (NYSE:XLP) outperformed, flat for the day, while the Technology Select Sector SPDR Fund (NYSE:XLK) lagged, down 3%.
Friday's Stock Movers
- Broadcom Inc. (NASDAQ:AVGO) tumbled 9.9%, on track for its worst session since March 2020, following weaker-than-expected guidance.
- Other stocks reacting to earnings included Samsara Inc. (NYSE:IOT), up 13%, Guidewire Software Inc. (NYSE:GWRE), up 11.8% and DocuSign Inc. (NASDAQ:DOCU), up 3.9%.
- Super Micro Computer Inc. (NASDAQ:SMCI) plummeted over 7% as JPMorgan downgraded the rating from Buy to Neutral and sharply lowered its price target from $950 to $500.
- AI Tech Sector 'Is Not In A Bubble,' But Diversification Out Of Magnificent 7 Is Key, Goldman Sachs Says
Photo created using artificial intelligence via Dall-E.