Economic Concerns Weigh on U.S. Stocks Amid Rate Cut Speculation
U.S. stocks dipped slightly as investors balanced economic fears against optimism for Federal Reserve rate cuts. The labor market weakened, increasing bets on rate cuts. Banks fell, but Broadcom's rise helped offset losses. Significant attention now turns to upcoming U.S. inflation data amid shifting economic indicators.
On Friday, U.S. stocks saw a minor decrease as investors juggled economic fears with hopes for interest rate cuts by the Federal Reserve, following weak August job growth data.
Bank shares experienced notable declines, while Broadcom shares soared by 9.4% due to a major AI chip order, providing some market resilience.
The U.S. economy added 22,000 jobs in August, far less than the projected 75,000, indicating labor market weaknesses. This prompted heightened expectations of rate cuts, with significant focus on upcoming inflation data.
(With inputs from agencies.)
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