On Friday, the S&P 500 fell -0.32%, the Dow Jones fell -0.48%, and the Nasdaq 100 rose +0.08%. September E-mini S&P futures fell -0.35%, while September E-mini Nasdaq futures rose +0.04%. Market sentiment shifted negative on concerns about weaker US corporate earnings amidst a potential recession.

The US unemployment report showed a weaker than expected +22,000 increase in payrolls for August. Private payrolls rose by +38,000, while manufacturing payrolls fell by -12,000. The unemployment rate rose to 4.3%, with average hourly earnings rising by +0.3% month-over-month and +3.7% year-over-year.

Market expectations for Fed rate cuts increased after the weak unemployment report, with a 9% chance of a 50 bp cut in September. The markets are now pricing in a total -73 bp rate cut by year-end. Tariffs faced legal challenges, with a ruling that Trump exceeded his authority, potentially raising average US tariffs to 15.2%.

Overseas stock markets closed mixed on Friday, with the Euro Stoxx 50 down -0.53% and China’s Shanghai Composite up +1.24%. US Treasury yields fell, with the 10-year T-note yield hitting a 5-month low. Energy stocks fell on reports of Saudi Arabia pushing for a quicker oil production boost.

Stock movers included Tesla (+3.6%), Apple (-), Nvidia (-2.7%), and Broadcom (+9.4%). Energy stocks like ConocoPhillips, Exxon Mobil, and Chevron all closed lower by more than -2%. Crypto stocks were mixed, with Bitcoin rallying +1% and Coinbase falling -2.5%.

Homebuilders like DR Horton, Lennar, and PulteGroup rallied on lower mortgage rates. Lululemon Athletica fell by -18.6% due to reduced guidance. Earnings reports included Casey’s General Stores. These updates were provided by Rich Asplund for informational purposes only.

Read more at Nasdaq MarketSite.: Stocks Fade on Economic Concerns after Weak US Unemployment Report