US stocks fell on Friday following a weaker-than-expected jobs report, with the S&P 500 and Dow Jones losing 0.4% and 0.5%, respectively. The US economy added only 22,000 jobs in August, far below expectations of 75,000, leading to a rise in the unemployment rate to 4.3%. Revisions to previous data show a decline in job creation over the last three months. Traders are now certain of an interest rate cut at the Federal Reserve’s September meeting, with a 100% chance priced in and speculation of a 50-basis-point cut. Treasury yields fell after the report, with the 30-year yield dropping below 4.79% and the 10-year yield hitting 4.07%, its lowest since April. President Trump criticized Fed Chair Jerome Powell again on social media, calling him ‘Too Late’ for not lowering rates sooner. In tech news, Broadcom’s shares jumped over 10% after signing a deal to build OpenAI’s first chips, while Tesla’s stock rose on proposals to pay CEO Elon Musk $1 trillion in compensation if performance targets are met. Gold futures surged to record levels after the weak jobs report, climbing nearly 6% over five sessions and up almost 40% year-to-date. Wall Street analysts cite bets on an imminent rate cut and concerns over Fed independence for the increase in gold prices. The US economy’s weak job creation in August has implications for investors, with possible reasons including Trump’s tariffs causing uncertainty among hiring managers and AI technology impacting job markets. President Trump’s ongoing criticism of Jerome Powell and efforts to remove Fed governor Lisa Cook have raised questions about the central bank’s independence. President Trump is considering reshaping the Federal Reserve to push for interest rate cuts following a weaker-than-expected August jobs report. Investor confidence in rate cuts is high, with a 100% chance of reduction at the Fed’s September meeting.
Broadcom’s market cap surged by $138.5 billion after exceeding Wall Street’s Q3 expectations and securing a $10 billion AI order. Nvidia and AMD stocks dropped as Broadcom gains market share. Analysts believe the AI market is expanding, benefiting companies like Broadcom.
Weak August job numbers sealed the deal for a Fed rate cut as the White House criticizes Powell for not acting sooner. The jobs report triggered a surge in rate cut bets, with traders now expecting multiple cuts by the end of the year.
Tesla’s stock rose nearly 5% after unveiling a $1 trillion pay package for CEO Elon Musk based on achieving specific milestones. Musk could gain a 12% stake in Tesla and significant voting power. Analysts believe Musk’s leadership is crucial during Tesla’s critical phase.
US stocks rose at the open, led by gains in tech stocks following a weak August jobs report. The S&P 500 and Nasdaq hit fresh highs, reflecting investor confidence in a Fed rate cut. Tesla and Broadcom shares surged in early trading on Friday.
Bets on Fed rate cuts surged after the jobs report, with odds now at 100% for a 25-point cut in September. Traders are also betting on a potential 50-point cut and cuts in October and December. The majority of traders expect three rate cuts by year-end.
Revisions to the monthly jobs report revealed June 2025 as the first month of labor market shrinkage since 2020, with a net loss of 13,000 jobs. The negative jobs print highlights the impact of the weak August job numbers on the economy. The US economy added just 22,000 jobs in August, the first negative monthly print since December 2020, with the unemployment rate rising to 4.3%. Economists had expected 75,000 jobs to be created. July’s job creation figures were revised to show 79,000 jobs added, while June’s data now reflects a loss of 13,000 jobs.
Broadcom’s stock rose 8% premarket on an upbeat outlook for AI revenue and a reported $10 billion AI infrastructure order from a new customer. The chipmaker has become a key player in generative AI, with investors boosting its shares 32% this year. Speculation abounds that OpenAI is the unnamed customer involved in the deal.
In premarket trading, Broadcom, DocuSign, and Lululemon were trending tickers. Broadcom’s stock rose 8% with promising AI revenue and CEO commitment, while DocuSign’s stock jumped 8% post-earnings beat. Lululemon saw a slump after lowering profit and sales forecasts. Broadcom’s latest AI deal sparked speculation about OpenAI being the customer.
The August jobs report is expected to confirm a weakening US labor market, with the Federal Reserve likely to cut rates in September. The report, released by the BLS, follows a series of disappointing job market readings. Analysts anticipate the data will influence Fed policy decisions.
Lululemon stock plummeted post-earnings, reflecting a poor quarter and outlook. Analysts attribute the decline to challenges in the domestic market and underperformance in the casual side of the business. The lack of must-have items has disappointed consumers, leading to a significant cut in revenue and EPS guidance for the year. Gold prices continue to soar, with the precious metal hitting a record high and maintaining its upward trajectory for a third consecutive week. Weaker-than-expected jobs data and concerns about the Fed’s independence are fueling the surge. Analysts warn of fading brand strength and lower growth for gold in the future. Tesla is proposing a new pay package for its CEO, contrary to previous reports of a new CEO being added. 1. The stock market hit record highs today, with the Dow Jones Industrial Average reaching 30,000 for the first time. This milestone comes amid promising news of a potential COVID-19 vaccine, driving investor optimism.
2. The U.S. economy added 245,000 jobs in November, falling short of expectations. The unemployment rate dropped to 6.7%, but concerns remain about slowing job growth and the impact of rising COVID-19 cases on the labor market.
3. Pfizer and BioNTech have applied for emergency use authorization for their COVID-19 vaccine in the U.S. The vaccine has shown 95% efficacy in clinical trials and could start distribution as early as December.
4. Airbnb is set to go public with an IPO that could value the company at $35 billion. The home-sharing platform has seen a surge in bookings as travelers seek safe, private accommodations during the pandemic.
5. Tesla announced plans to join the S&P 500 index in December, following five consecutive quarters of profitability. The electric car maker’s stock has soared in 2020, making CEO Elon Musk one of the world’s wealthiest individuals.
Read more at Yahoo Finance: S&P 500, Nasdaq, Dow slip after jobs report shows dramatic slowdown