U.S. stock markets fall despite expectations of interest rate cuts
(MENAFN) On Friday, major U.S. stock indexes experienced a sharp decline, driven by a weaker-than-expected jobs report from the labor Department, which has led to heightened expectations of a significant interest rate cut by the Federal Reserve this September. The S&P 500 is on track for its worst week since March 2023 as investors react to the disappointing August jobs data and shift away from technology stocks. According to the Labor Department, the U.S. Economy added only 142,000 jobs in August, falling short of the anticipated 164,000. Additionally, the July jobs figures were revised downward to 89,000, and the private non-farm sector saw an increase of 118,000 jobs, compared to expectations of 139,000. The revised July data for the private sector also showed a decrease to 74,000 jobs.
In terms of stock movements, the Standard & Poor's 500 Index dropped by 1.62 percent, closing at 5,414.32 points. The Nasdaq Composite Index fell more significantly, by 2.48 percent, ending at 1,670,096 points. The Dow Jones Industrial Average also declined, losing about 377.50 points, or 0.93 percent, to reach 40,378.25 points. The overall market response reflects investor concern over the weaker job growth and the impact it may have on future Federal Reserve policies.
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