Stocks Tumble On Jobs Data, Nasdaq 100 Eyes Worst Week In 2 Years As Semiconductors Slump: What’s Driving Markets Friday?
Investors showed little enthusiasm for the August jobs report, as the slower-than-expected hiring numbers deepened worries about a softening labor market.
The U.S. economy added 142,000 nonfarm jobs in August, up from July’s 89,000 but falling short of the projected 160,000. The unemployment rate edged down by 0.1% to 4.3%, in line with expectations, while wages saw stronger-than-anticipated growth, rising 0.4% month-over-month.
On Friday, markets shifted sharply into risk-off mode, with all major indices dropping over 1% by midday trading in New York.
The CBOE Volatility Index (VIX) spiked over 17% to 23 points. The Nasdaq 100 led the decline, losing over 5% for the week, eyeing its worst performance since September 2022.
Semiconductors dragged down the tech-heavy index. The iShares Semiconductor ETF (NYSE:SOXX) dropped nearly 5%, while Nvidia Corp. (NASDAQ:NVDA) fell more than 4%. The chipmaker giant extended the weekly loss to 14%, on track for its steepest decline since October 2022.
Investors dumped equities and moved into cash as the U.S. dollar strengthened despite weaker-than-expected nonfarm payroll data.
In the bond market, short-term Treasury yields tumbled, bringing the yield curve back to a normal shape after two years of inversion. The two-year Treasury yield fell below the 10-year, signaling a shift in economic outlook.
Commodities took heavy losses across the board. Gold dropped 0.9%, silver plunged 3.1% and crude oil (WTI) slid 3%, reaching $66 per barrel, the lowest since May 2023.
Bitcoin (CRYPTO: BTC) also dropped, losing over 3%, as investors steered clear of crypto assets amid a broad-based decline in risk appetite.
Friday’s Performance In Major US Indices, ETFs
Major Indices
Price
1-day %chg
Dow Jones
40,320.98
-1.1%
S&P 500
5,406.64
-1.8%
Russell 2000
2,092.33
-2.2%
Nasdaq 100
18,424.39
-2.7%
Updated at 12:50 p.m. ET
According to Benzinga Pro data:
The SPDR S&P 500 ETF Trust (NYSE:SPY) was 1.8% lower to $539.77.
The SPDR Dow Jones…
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