Stock market news live updates: Stocks slide into long weekend after forfeiting post-jobs report gains – Yahoo Finance

U.S. stocks fell sharply on Friday, surrendering all of the gains from a post-jobs report rally ahead of the Labor Day holiday weekend.
[Click here to read what’s moving markets on Tuesday, September 6]
The S&P 500 shed 1.1%, while the Dow Jones Industrial Average fell by the same margin, or about 340 points. The tech-heavy Nasdaq logged the biggest slide of the major averages, capping the session down 1.3%.
The losses came after a rally earlier in the day suggested some investor optimism that a more modest 0.50% interest rate hike could be coming from the Fed later this month after the August jobs report showed job growth moderated last month, as expected.
Data from the Labor Department published Friday morning showed nonfarm payrolls grew by 315,000 in August while the unemployment rate rose to 3.7%.
Economists had expected job gains would total 298,000 with the unemployment rate expected to hold at 3.5%.
Wage gains moderated somewhat last month, with average hourly earnings rising 0.3% month-on-month and 5.2% over the prior year. Both readings were 0.1% below expectations.
The biggest highlight from Friday’s jobs data, however, was the increase in participation, with 786,000 Americans entering the workforce last month and pushing the labor force participation rate to 62.4%, its highest since March 2020.
Investors were laser-focused on Friday’s data after Fed Chair Jerome Powell asserted in a hawkish speech at the Jackson Hole symposium last week that he is willing to accept weaker labor conditions in exchange for cooling prices.
“The slower pace of payroll gains in August, together with the big rebound in the labour force, and the more modest increase in wages, would seem to favor a smaller 50bp rate hike from the Fed next month, rather than a 75bp increase, but officials will put a lot more weight on August’s CPI data, due the week after next,” Michael Pearce, senior U.S. economist at Capital Economics, wrote in a note on Friday.
In addition to the stock market’s rally, the dollar was weakening on Friday — a positive for risk assets — while Treasury yields were moderating after rising sharply earlier this week. The 10-year yield stood near 3.21% in late morning trade, down from highs around 3.27% reached earlier this week.
Shares of Lululemon (LULU) closed up 6.7% after the athletic apparel retailer reported quarterly earnings Thursday that topped Wall Street estimates. The company also lifted its annual profit and revenue guidance above analysts forecasts as wealthy customers snap up its new accessory offerings.
Broadcom (AVGO) shares also rose Friday on the heels of a strong sales outlook by the chipmaker for the current quarter, quelling fears of a recessionary decline in chip demand.
While some better-than-feared financials this season have helped buoy sentiment, many strategists have recently sounded the alarm on imminent weakness in earnings.
According to Morgan Stanley’s Mike Wilson, while the first half of the year was dictated by Federal Reserve policy and tighter financial conditions, the second half will be determined by earnings expectations for next year.
“As a result, equity investors should be laser focused on this risk, not the Fed, particularly as we enter the seasonally weakest time of the year for earnings revisions, and inflation further eats into margins and demand,” Wilson said.

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc
Click here for the latest trending stock tickers of the Yahoo Finance platform
Click here for the latest stock market news and in-depth analysis, including events that move stocks
Read the latest financial and business news from Yahoo Finance
Download the Yahoo Finance app for Apple or Android
Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and YouTube
Related Quotes
After popping briefly yesterday on positive analyst commentary over its 2022 Global Technical Conference performance, Nvidia (NASDAQ: NVDA) stock is trending lower again Thursday — down 5% through 11 a.m. on some curious comments from the company's CEO. Commenting on what some analysts have called the "eye-watering" prices announced for its latest series of GeForce RTX graphics, Nvidia CEO Jensen Huang asserted that "Moore's Law is dead" — and that semiconductor prices are only going up from here. To refresh your memory, Moore's Law is an assertion made by legendary Intel engineer Gordon Moore in 1965, that the number of transistors in an integrated circuit roughly doubles every two years, with the result that semiconductors will get both better and cheaper over time.
On Wednesday, the Fed bumped up interest rates again, its third 75-basis point hike since June, and signaled that there could be two more such hikes by the end of this year. The conventional wisdom has the Fed acting properly, and aggressively, in an attempt to counter inflation raging at 40-year high levels. But conventional wisdom isn’t always right – and we can learn a lot by consulting the contrarians. Few top investors are more contrarian than Cathie Wood. The founder and manager of ARK Inv
In this article, we will look at billionaire Ken Fisher’s top 10 growth stock picks. If you want to explore similar stocks, you can also take a look at Ken Fisher’s Top 5 Growth Stock Picks. Ken Fisher is an American billionaire investor and financial analyst. Mr. Fisher is the hedge fund manager of Fisher […]
You have just a few weeks to pounce on Treasury I bonds' sky-high interest rate. Also called Series I savings bonds, their interest rate is 9.62%.
In this article, we shall discuss the 10 best undervalued stocks to buy now according to billionaire D.E. Shaw. To skip our detailed analysis of Shaw’s history, his investment philosophy, and hedge fund performance, go directly and see 5 Best Undervalued Stocks to Buy Now According to Billionaire DE Shaw. David Elliot Shaw, an American […]
Having excellent management is vital for both a successful company and its stock. It's rare to see both positions depart simultaneously, and with Shopify's recent struggles, investors may think the ship is beginning to sink. Or is Shopify still a great stock to own?
Shares of Airbnb (NASDAQ: ABNB) were sliding today as the travel stock reacted to yesterday's interest rate hike from the Federal Reserve and hawkish commentary on ongoing rate hikes as the central bank seeks to rein in inflation. As an expensive travel stock, Airbnb has greater sensitivity to interest rates than most of the market. Travel, especially the vacation/personal travel that Airbnb specializes in, is one of the more discretionary categories of consumer spending.
The latest Federal Reserve rate hike and Fed Chair Jerome Powell's vow to do whatever is necessary to fight inflation are rippling through markets, sending shares down due to investor fears that the Fed's actions will push the economy into a recession. Travel is perhaps the ultimate big-ticket discretionary purchase, and airline stocks are tumbling as part of the broader sell-off. Shares of JetBlue Airways (NASDAQ: JBLU), American Airlines Group (NASDAQ: AAL), and United Airlines Holdings (NASDAQ: UAL) are all down as much as 5%, with shares of Delta Air Lines (NYSE: DAL), Alaska Air Group (NYSE: ALK), and Southwest Airlines (NYSE: LUV) all down 3% or more.
If you're investing in the cannabis industry, you need to be aware of how overly bullish some companies and CEOs are about their prospects. Tilray Brands (NASDAQ: TLRY) falls into that crowd, pumping itself up to be a $4 billion business in just a few years. There are warning signs about Tilray's promises and forecasts that investors shouldn't ignore.
The retreat is being driven by soaring inflation and rising interest rates, which are putting the brakes on the economy and forcing investors to rethink their growth expectations. Upstart Holdings (NASDAQ: UPST), for example, uses artificial intelligence (AI) to originate loans for banks on other lenders, and investors have doubts about how well its lending models will hold up as household finances deteriorate. Upstart's main goal is to displace the standard tools used to size up the risk in consumer lending.
Berkshire Hathaway holdings RH and Snowflake have been crushed under the weight of the 2022 bear market.
The S&P 500 is down more than 2% since Tuesday’s close. There is reason to believe markets are close to finding a floor.
QuantumScape (NYSE: QS) shares are significantly outperforming other technology stocks to the downside today. While the tech-heavy Nasdaq Composite index was down about 1.3% as of 2:45 p.m. ET, QuantumScape stock was lower by 6%. If successfully commercialized, solid-state battery technology should provide faster charging times with a more efficient and safer battery.
Plug Power (PLUG) closed the most recent trading day at $25.52, moving -1.85% from the previous trading session.
This year's market slump created several growth stock bargains. But not every apparent bargain is what it seems.
Yahoo Finance's Jared Blikre breaks down how stocks are moving after the Fed's interest rate hike on Wednesday.
In this article, we discuss Druckenmiller’s latest market prediction and his 10 defensive stock picks. If you want to read about some more stocks in the Druckenmiller portfolio, go directly to Druckenmiller’s Prediction and His 5 Defensive Stock Picks. Stanley Druckenmiller of Duquesne Capital is one of the most famous investors on Wall Street, having […]
Yahoo Finance Live’s Julie Hyman discusses Novavax stock performance after JPMorgan downgrades its shares to Underweight from Neutral.
In this video, I will be talking about the current state of Palantir (NYSE: PLTR), which was recently ranked the No. 1 artificial intelligence software platform in 2021 market share and revenue, beating the likes of Microsoft, IBM, Amazon's AWS, and Alphabet.
The Federal Reserve is trying to get inflation under control by ramping up interest rates and that's weighing on stock prices, which pushes up dividend yields. One sector that has gotten hit particularly hard due to its sensitivity to rates is the real estate investment trust (REIT) industry. Three Fool.com contributors think Medical Properties Trust (NYSE: MPW), Macerich (NYSE: MAC), and Gladstone Commercial (NASDAQ: GOOD) look like compelling buys at this moment.

source

Leave a Comment