Stock market today: Nasdaq futures lead markets lower ahead of crucial jobs report
Published On Sep 6, 2024, 6:38 AM
US stocks had a tough week, ending in decline following a disappointing jobs report for August, which showed only 142,000 jobs added, below expectations of 165,000. The unemployment rate did drop to 4.2%, but the overall job growth showed signs of slowing, causing market uncertainty about potential Federal Reserve interest rate cuts. The Nasdaq Composite experienced its worst week since June 2022, dropping over 2.5%. Tech stocks took the hardest hit, with Broadcom and Nvidia seeing significant declines due to poor sales forecasts and overall market sentiment. Investors are closely watching upcoming inflation data, as this may impact future Fed decisions.
Stock Forecasts
AVGO
Negative
The tech sector is likely to continue facing pressure in the short term as uncertainty around the Fed's interest rate decisions looms alongside weak earnings revisions. The disappointing performance of major tech stocks could signal further sell-offs if sentiment does not improve.
XLK
Negative
Given the weak job growth and concerns about inflation, expectations for substantial interest rate cuts might not materialize as hoped. Investors may want to consider exposure to more defensive sectors as the market adjusts to a potentially prolonged period of volatility.
NVDA
Negative
Nvidia's recent performance reflects broader trends in the tech industry and may continue to see declines as the AI boom faces scrutiny regarding sustainability. Investors should proceed with caution regarding heavy allocations to growth-focused tech stocks.
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