Fed Rate Cut Hints Amid Slowing Job Growth Weigh on U.S. Stocks
U.S. stocks saw slight declines on Friday as investors balanced economic concerns with Federal Reserve rate cut expectations after disappointing August job growth data. While major indexes initially rose, they closed lower, reflecting uncertainty. The labor market's weakening prompts potential rate cuts, affecting sectors like real estate and banking.
Friday saw U.S. stocks closing slightly lower as the market absorbed mixed signals from the economy. Weak August job growth, reported by the Labor Department, contrasted with hopes that the Federal Reserve might cut interest rates soon.
Particularly hard hit were banks, with the S&P 500 bank index dragging down the broader market. Instead of the projected 75,000 jobs, only 22,000 were created, highlighting labor market struggles. This slowdown fueled speculation among traders for potential back-to-back Federal Reserve rate cuts, starting this month.
Broadcom provided some bright spots, projecting fourth-quarter revenue above estimates and positive artificial intelligence revenue growth. Meanwhile, news that Tylenol usage during pregnancy might link to autism hit Kenvue shares, adding to the day's mixed market sentiment.
(With inputs from agencies.)
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