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Stocks rose to all-time highs despite a weak August jobs report as traders bet the data would lead the Federal Reserve to cut rates later this month.
The Dow Jones Industrials collapsed 276.54 points to greet noon hour EDT Friday at 45,344.65.
The S&P 500 index subsided 35.86 points to 6,466.22.
The NASDAQ staggered 61.86 points to 21,645.84.
Stocks are also on pace for a winning week. The S&P 500 has climbed 1%, while the technology-heavy NASDAQ Composite has registered a 1.8% gain. The 30-stock Dow has gained 0.4%.
JPMorgan and Wells Fargo paced the negative reversal on fears a slowing economy may hit loan growth. Industrials Boeing and GE Aerospace also got hit on fears of a troubled economy.
However, Broadcom was a standout performer, with the stock popping 9% on the heels of the chipmaker’s latest quarterly results beating Wall Street’s expectations. The company’s chief executive, Hock Tan, also disclosed in a call with analysts that Broadcom had secured $10 billion in custom AI chip orders from a new customer.
Nvidia shares dropped 2%, as Broadcom’s strong results may signal there’s growing competition for the AI darling. Palantir, another artificial intelligence favorite that’s been under pressure of late, also slid 2%.
The August jobs report saw the U.S. economy add 22,000 jobs on the month, the Bureau of Labor Statistics reported Friday. That’s below the 75,000 that economists polled by Dow Jones had expected. The unemployment rate also rose to 4.3%, in line with expectations.
Traders are hoping the reading will lend support to the Fed’s case to go ahead with an expected rate cut at its September policy meeting. Fed funds futures trading suggests that benchmark interest rates will likely move a quarter percentage point lower when the central bank makes a decision on Sept.17,
Prices for 10-year Treasury leaped Friday, lowering yields to 4.07% from Thursday’s 4.16%. Treasury prices and yields move in opposite directions.
Oil prices stumbled $1.95 to $61.53 U.S. a barrel.
Gold prices raised themselves $43.90 at $3,650.60 U.S. an ounce.
