Current:Home > reviewsS&P 500, Dow, Nasdaq post largest weekly percentage loss in years after weak jobs data -FinanceCore
S&P 500, Dow, Nasdaq post largest weekly percentage loss in years after weak jobs data
View
Date:2025-04-12 03:23:05
U.S. stocks closed lower on Friday, forcing all three major indexes to register the largest weekly percentage losses in years, after a weak jobs report kept investors questioning how much the Federal Reserve would lower interest rates in coming weeks.
For the week, the S&P 500 lost 4.25% and the Dow fell 2.93%. Both were their largest weekly percentage losses since March 2023. The Nasdaq declined 5.77% for the week, which was the biggest weekly percentage loss since January 2022.
U.S. employers added a disappointing 142,000 jobs in August, below Bloomberg's consensus estimate of 163,000 jobs. July was revised down to 89,000, also below estimates. The unemployment rate edged down to 4.2% from July's 4.3%.
Slowing jobs growth confirms that the economy is weakening, which almost ensures the Fed will cut rates when it concludes its policy meeting on September 18. However, it also may suggest the Fed's rate cuts may be too late for the economy to achieve a soft landing, said Lou Basenese, president and chief market strategist at MDB Capital in New York.
"If we start seeing layoffs in the next month or two, it's going to suggest his timing was too late," he said.
Bond markets looked forward to rate cuts, with the two-year Treasury yield dropping to the lowest level since 2022.
How big will the Fed's rate cut be?
Fed Governor Christopher Waller said on Friday "the time has come" for the U.S. central bank to begin a series of interest rate cuts, adding he is open-minded about the size and pace.
The CME's Fed watch tool, which calculates the odds of a Fed move, shows a 71% chance of a quarter-point cut at the Fed's next meeting. Chances for a half-point reduction stood at 29%.
In 2022 and 2023, the Fed hiked its key rate from near zero to a 23-high of 5.25% to 5.5% to fight inflation, and the rate has remained there since.
Corporate news weighs on stocks, too
Broadcom sank 10% to $137.00 after the chipmaker forecast fourth-quarter revenue slightly below estimates, hurt by sluggish spending in its broadband segment.
Super Micro Computer lost 6.87%, dropping to $386.46 after J.P. Morgan analysts downgraded the AI server maker's shares to neutral from overweight.
(Reuters contributed to this report.)
Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at [email protected] and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday.
veryGood! (6943)
Related
- The company planning a successor to Concorde makes its first supersonic test
- 2023 Coachella & Stagecoach Packing Guide: 12 Festival Dresses That Will Steal the Show
- Lifeboat and door found in search for Japanese army Black Hawk helicopter feared down in sea
- Knock 3 Times To Reveal These Secrets About Now and Then
- Jorge Ramos reveals his final day with 'Noticiero Univision': 'It's been quite a ride'
- Tom Schwartz Breaks Silence on Tom Sandoval Scandal
- Instagram Debuts New Safety Settings For Teenagers
- Antisemitic Posts Are Rarely Removed By Social Media Companies, A Study Finds
- Nevada attorney general revives 2020 fake electors case
- Your Radio, TV And Cellphone May Start Blaring Today. Do Not Be Alarmed
Ranking
- Could your smelly farts help science?
- 18 Amazon Picks To Help You Get Over Your Gym Anxiety And Fear Of The Weight Room
- The Horrific Crimes That Inspired the Oscar-Nominated Film Women Talking
- In Ukraine's strategic rail town of Kupyansk, there's defiance, but creeping fear of a new Russian occupation
- B.A. Parker is learning the banjo
- Remains of Michigan airman killed in World War II's Operation Tidal Wave identified 79 years later
- China wraps up war games around Taiwan, practicing for an attack as tension with U.S. mounts
- How New Biden Rules Could Make It Easier To Buy Hearing Aids Or Fix Your Phone
Recommendation
Intel's stock did something it hasn't done since 2022
Matthew Mazzotta: How Can We Redesign Overlooked Spaces To Better Serve The Public?
The most expensive license plate in the world just sold at auction for $15 million
Matthew Mazzotta: How Can We Redesign Overlooked Spaces To Better Serve The Public?
Whoopi Goldberg is delightfully vile as Miss Hannigan in ‘Annie’ stage return
Dyson 24-Hour Deal: Save $300 on This Vacuum and Make Your Chores So Much Easier
Dyson 24-Hour Deal: Save $300 on This Vacuum and Make Your Chores So Much Easier
This Remake Of A Beloved Game Has The Style — But Lacks A Little Substance