U.S. stocks closed slightly lower as investors balanced economic concerns with optimism over potential Fed rate cuts after weak job growth in August. Bank shares fell 2.4%, but Broadcom’s 9.4% gain offset losses. The Dow fell 0.48%, S&P 500 0.32%, and Nasdaq 0.03%. Markets initially rose but ended off session lows.

The Labor Department reported only 22,000 new jobs in August, below the expected 75,000, indicating a softer labor market. Stock indexes reacted positively, anticipating Fed rate cuts. U.S. stock investors await inflation data next week, focusing on the consumer price index due Thursday.

BofA Global Research revised its outlook, predicting quarter-point rate cuts in September and December. Market expects a 93% chance of a standard 25 bp cut and a 7% chance of a 50 bp cut in September. Rate-cut expectations boosted real estate, with the Philadelphia Housing Index jumping 2.1%.

Kenvue shares dropped 9.3% following reports of potential autism links to its Tylenol medication. Lululemon Athletica fell 18.6% after cutting its profit forecast. Advancing stocks outnumbered decliners, with 1.87-to-1 ratio on NYSE and 1.42-to-1 on Nasdaq. U.S. exchanges saw 16.95 billion shares traded.

Read more at Yahoo Finance: Wall Street indexes end lower as jobs data fuels economic worries