US markets end deeply in red on Friday

09 Sep 2024 Evaluate

The US markets ended deeply in red on Friday. The major averages all showed significant moves to the downside on the day, with the tech-heavy Nasdaq tumbling to its lowest closing level in almost a month. The sell-off on markets came amid concerns about the outlook for the U.S. economy after the Labor Department released a closely watched report showing employment rose by less than expected in the month of August. The Labor Department said non-farm payroll employment climbed by 142,000 jobs in August compared to street estimates for an increase of 160,000 jobs. The report also said the increases in employment in June in July were downwardly revised to 118,000 jobs and 89,000 jobs, respectively, reflecting a net downward revision of 86,000 jobs.

Meanwhile, the Labor Department said the unemployment rate edged down to 4.2 percent in August from 4.3 percent in July. The modest decrease, which was in line with estimates, came after the unemployment rate reached its highest level since October 2021. On the sectoral front, semiconductor stocks turned in some of the market's worst performances on the day, with the Philadelphia Semiconductor Index plunging by 4.5 percent to its lowest closing level in a month. Broadcom (AVGO) helped lead the sector lower, plummeting by 10.4 percent after reporting better than expected fiscal third quarter results but providing disappointing revenue guidance for the current quarter. Banking stocks also saw considerable weakness on the day, resulting in a 2.6 percent slump by the KBW Bank Index.

Dow Jones Industrial Average fell 410.34 points or 1.01 percent to 40,345.41, Nasdaq dropped 436.83 points or 2.55 percent to 16,690.83 and S&P 500 was down by 94.99 points or 1.73 percent to 5,408.42.