The tech-heavy Nasdaq Composite ended the day slightly lower and stocks experienced a modest decline on Friday after reaching record highs earlier in the session, prompted by the release of labor market data that bolstered anticipations of an interest rate cut by the Federal Reserve this month. The Dow Jones Industrial Average declined by 0.5%, the S&P 500 experienced a decrease of 0.3%. The S&P 500 and the Nasdaq recorded modest gains over the week, whereas the Dow experienced a slight decline for the second consecutive week. Equities were concluding a positive session on Thursday as market participants prepared for the forthcoming employment figures.
The monthly employment report from the Bureau of Labor Statistics indicated that U.S. employers added a mere 22,000 jobs last month, significantly lower than the anticipated 75,000, while the unemployment rate crept up to 4.3%. Although the employment figures fell short of expectations, which may prompt worries regarding economic stability, this development reinforces the expectation that the Federal Reserve is likely to reduce its benchmark interest rate for the first time in 2025. Federal Reserve Chair Jerome Powell indicated last month that prevailing economic conditions might justify a reduction in interest rates at the upcoming policy committee meeting scheduled for September 17. The yield on the 10-year Treasury, a critical determinant of borrowing costs across various loan types, particularly mortgages, stood at 4.08% in late trading, a decrease from 4.18% at the previous day’s close. The yield declined to 4.06% on Friday, marking its lowest point since early April, when apprehensions regarding the economic repercussions of tariffs caused significant market turmoil.
Shares of Broadcom surged more than 9% today after the chip giant reported better-than-expected quarterly results amid booming demand for its AI offerings. The company also reported a new multibillion-dollar customer last night, which reports suggest is OpenAI. Tesla shares gained 3.6% after the company unveiled a pay package plan for CEO Elon Musk that sets ambitious performance targets over the next decade and could boost his overall compensation to $1 trillion.
Other mega-cap technology stocks exhibited a mixed performance on Friday. Shares of AI investor favorite and Broadcom rival Nvidia dropped nearly 3%, as did those of Microsoft, while Amazon declined more than 1%, and Apple ticked lower. Alphabet tacked on 1% and Meta Platforms added 0.5%. A variety of semiconductor equities experienced significant fluctuations today. Advanced Micro Devices experienced a decline of approximately 6.5%, whereas Micron saw an increase of nearly 6%. The PHLX Semiconductor Index advanced by 1.7%.
Among other noteworthy movers, shares of Lululemon Athletica tumbled nearly 19% to lead S&P 500 decliners following a disappointing earnings report. Shares of Tylenol maker Kenvue dropped 9% following a report indicating that Health Secretary Robert Kennedy is set to release findings that associate the use of the pain medication during pregnancy with autism.
Bitcoin was at 110,800 in late-afternoon trading, down from an earlier high of 113,300. The cryptocurrency has faced significant pressure in recent weeks following its peak of over $124,000 in mid-August. The U.S. dollar index, which monitors the performance of the U.S. dollar relative to a selection of foreign currencies, declined by 0.6% to 97.74.
Gold prices, having declined on Thursday following a streak of record highs over three consecutive days, have resumed their upward trajectory today. Gold futures increased by 0.9% to approximately $3,640 per ounce, following a new record of $3,655 reached during today’s trading session. West Texas Intermediate futures, the U.S. crude oil benchmark, declined by 2.4% to $61.95 per barrel, marking a third consecutive day of decreases and reaching their lowest levels in three months.