Stocks in the S&P 500, Dow Jones, and Nasdaq are down today, with futures also in the red. Market sentiment turned negative amid concerns of weaker US corporate earnings and a potential recession. The weak US unemployment report solidified expectations of at least two Fed rate cuts by year-end.

The August payroll report showed a rise of only +22,000 jobs, well below expectations. Private payrolls increased by +38,000, while manufacturing payrolls fell by -12,000. The unemployment rate rose to 4.3%. Average hourly earnings were in line with expectations, easing to +3.7% year-over-year.

The 10-year T-note yield fell on the weak unemployment report, with markets now pricing in a 93% chance of a -25 bp rate cut in October. A federal appeals court ruled that Trump overstepped his authority with global tariffs. Overseas markets are mixed, with the Euro Stoxx 50 down and China’s Shanghai Composite up.

Tesla surged after announcing a pay deal for Elon Musk. Apple hit a record in fiscal sales in India. Nvidia dropped due to competition from Broadcom. Broadcom itself rose over 9% on an AI chip agreement. Energy stocks fell on reports of Saudi Arabia pushing for increased oil production. Crypto stocks declined, while homebuilders saw gains.

Lululemon Athletica tumbled over 18% after cutting its guidance. Earnings reports for September 5, 2025, include ABM Industries, C&F Financial Corp, and National Beverage Corp. The author disclosed no positions in mentioned securities. The views expressed are those of the author and not Nasdaq, Inc.

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