Stock market today: Stocks open higher after jobs report shows more cooling
Published On Sep 6, 2024, 9:36 AM
U.S. stocks ended a volatile trading week lower, primarily driven by disappointing jobs data that hinted at a cooling labor market. The Nasdaq Composite dropped over 2.5%, marking its worst week since June 2022. The economy added only 142,000 jobs in August, falling short of the expected 165,000, though the unemployment rate slightly improved to 4.2%. This shift in employment data has increased speculation that the Federal Reserve may implement a significant interest rate cut at its upcoming meeting on September 18. Tech stocks, particularly semiconductor companies, faced the brunt of the selloff, with Nvidia and Broadcom reporting disappointing forecasts that contributed to their stock price declines.
Stock Forecasts
NVDA
Negative
Due to softening employment data and tepid forecasts from major players in the tech sector, the downward pressure on tech stocks is likely to continue. Both Nvidia and Broadcom's recent performance indicates a potential pessimistic outlook for the semiconductor sector, further exacerbated by general investor anxiety about broader economic conditions. Coupled with the uncertainty surrounding any upcoming interest rate cuts from the Fed, a cautious approach to tech investments is advisable for the near term.
XLK
Positive
Given the Fed's likely inclination to cut interest rates in response to the weak jobs report, sectors sensitive to interest rates, like real estate or consumer discretionary, may see a rebound as lower rates typically boost borrowing and spending. However, continued volatility in tech may overshadow these benefits in the short term
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