S&P 500 Poised for Worst Week Since March 2023 Amid Jobs Data Miss: Markets Wrap

Stocks tumbled toward their worst weekly decline since March 2023, as weaker-than-expected US labor data raised concerns about the slowing economy and the Federal Reserve’s response. The S&P 500 fell 1.5%, while the Nasdaq 100 dropped 2.4%, following news that August payroll growth missed forecasts by 23,000 jobs. This left the three-month average at its lowest since mid-2020. Meanwhile, Treasury yields fluctuated, with two-year yields slipping by up to 15 basis points before recovering.

All major sectors of the S&P 500 saw declines, led by technology stocks, with the “Magnificent Seven” megacap companies sinking 3.3%. Nvidia Corp. (NVDA)  fell 3.7%, and Broadcom Inc. (AVGO) plunged 9.5% after a disappointing earnings forecast. The Dow Jones Industrial Average (DJI) lost 0.8%, while the Russell 2000 (RUT) dropped 1.7%.

Wall Street’s fear gauge, the VIX (VIX), surged to around 23, reflecting heightened volatility. Treasury 10-year (UTEN) yields dipped slightly to 3.72%, and Bitcoin (BTC) slumped 4.4%.