Title: S&P 500 Plunges Amid Fresh Economic Worries - Nonfarm Payrolls Below Estimates, Fed Governor Calls for Rate Cuts, and Broadcom Sales Outlook Disappoints
Investing.com -- The S&P 500 experienced a sharp decline on Friday, marking its worst week since 2023 due to renewed economic concerns following lower-than-expected job creation data in the U.S.
By 4:00 p.m. ET (20:00 GMT), the S&P 500 dropped by 1.7%, leading to weekly losses exceeding 3%, making it the worst week since March. The tech-heavy Nasdaq slumped by 2.5%, while the Dow Jones Industrial Average fell by 401 points or 1%.
Nonfarm payrolls for August fell below estimates, with the U.S. economy adding 142,000 jobs, up from a revised figure of 89,000 in July. The unemployment rate remained at 4.2%, in line with expectations. Average hourly earnings growth also increased by 0.4%.
Fed Governor Christopher Waller called for rate cuts later this month, stating that the size and pace of cuts will depend on incoming economic data. This comes as the market anticipates aggressive rate cuts from the Fed to combat a possible economic slowdown.
Broadcom's sales outlook disappointed investors, causing the stock to drop by over 10% in early U.S. trading. Despite beating Wall Street estimates, UiPath Inc. saw a 6% decline in its stock price.
In summary, the recent economic data, Fed's potential rate cuts, and corporate performance like Broadcom's sales outlook and UiPath's stock movement all point towards a volatile market environment with potential implications for investors' portfolios. It is crucial for individuals to stay informed and consult with financial advisors to navigate these uncertain times effectively.