US stocks hovered near all-time highs after a weaker August payrolls print sharpened bets on a September Fed cut. Employers added 22,000 jobs, while unemployment rose to 4.3%, confirming a slowing labor market.
Bond markets rallied on the data. The 10-year Treasury yield fell toward 4.08%, while the 2-year slipped near 3.48%, reflecting easier policy expectations. Traders now see high odds of a cut at the Sept. 17 meeting. Stocks remain sensitive to next week’s inflation reading.
Futures and cash trading reflected the tug-of-war between cooling growth and policy support. S&P 500 futures touched record territory earlier, helped by tech strength, before indexes faded from intraday peaks. The backdrop still points to a soft-landing narrative, but data remains mixed.
The S&P 500 slipped 0.7%, while the NASDAQ Composite fell by 0.6%. The Dow Jones Industrial Average dropped 0.3% intraday, closing to a 0.7% loss, or about 334 points.
Broadcom jumped after upbeat results and guidance tied to artificial-intelligence demand. The company is also helping OpenAI design and produce a custom AI accelerator starting in 2026, a development that could broaden the market beyond GPUs.
The move pressured peers. NVIDIA slipped as investors weighed potential share shifts in the AI computing market. AMD also fell amid rotation after Broadcom’s surge and ongoing scrutiny of data-center growth. Semiconductor leadership stayed narrow through midday.
Tesla rose after the board proposed a new, performance-based compensation plan for CEO Elon Musk that could reach $1 trillion if ambitious milestones are met. Investors framed the package around Tesla’s AI and robotics roadmap. The plan awaits a shareholder vote.
Lululemon tumbled after cutting its full-year outlook and citing tariff headwinds. Management flagged softer US demand even as international growth held up. The guidance reset weighed on apparel peers.
Crude oil prices fell as OPEC+ weighs faster output increases at a weekend meeting. The prospect of more barrels, plus a surprise US inventory build, pressured energy shares. Brent hovered in the mid-$60s.
Equity indexes continue to balance cooling growth with the promise of policy relief. A soft labor market boosts the case for easing, yet a hot inflation print could complicate the path. For now, lower yields support higher-multiple sectors, while stock-specific catalysts drive dispersion.
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