Wall Street's Rollercoaster: Weaker Jobs and Fed Rate Bets Shake the Market
Wall Street's key indexes fell after weak August job data fueled speculation of Federal Reserve interest-rate cuts. While tech-giant Broadcom surged due to optimistic AI revenue forecasts, Lululemon's forecast slash sent stocks plummeting. Investors are closely monitoring potential economic slowdowns and policy changes, impacting market dynamics significantly.
Wall Street's primary indexes fell from all-time highs as concerns about the world's largest economy overshadowed hopes for U.S. Federal Reserve rate cuts after weak jobs data. Key sectors like banks, energy, and industrials led the losses, reflecting broader economic sensitivity.
New data indicated that only 22,000 jobs were created in August, missing the forecast of 75,000 and highlighting a softer labor market. This bolstered expectations of significant rate cuts by the Federal Reserve, with futures traders increasingly betting on a potential 50-basis-point reduction.
Notably, Broadcom shares soared due to strong AI revenue projections, while Lululemon stocks plummeted after cutting their profit forecast. As Tesla's shares rose marginally with news of a massive CEO compensation plan, investor sentiment remains cautious yet hopeful for economic stabilization.
(With inputs from agencies.)
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