S&P 500 Heads Toward Worst Week Since March 2023: Markets Wrap

By Investor Empires On Sep 6, 2024

(Bloomberg) — Stocks were headed for their worst weekly decline since March 2023 and bonds retreated after another disappointing labor market report raised concerns that the economy is slowing and the Federal Reserve is moving too slowly to rescue it.

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The S&P 500 fell 1.7% and the Nasdaq 100 fell 2.6% after data showed that U.S. payrolls added 23,000 fewer jobs than expected in August. Two-year Treasury yields fell 15 basis points — before retreating. Meanwhile, Wall Street’s bets on the Federal Reserve cutting interest rates by a half-point this month — after briefly gaining momentum when Fed Governor Christopher Waller said he was “open-minded” about the possibility of a bigger cut — have faded.

“Financial markets have shifted their focus to how much the Fed will ease policy and how quickly the economy will slow,” says Scott Rein of the Wells Fargo Investment Institute. “Volatility is expected to continue in the near term.”

Nonfarm payrolls rose by 142,000 jobs last month, leaving the three-month average at its lowest level since mid-2020, the Bureau of Labor Statistics said Friday. The unemployment rate fell to 4.2%, the first decline in five months, reflecting a reversal in temporary layoffs.

All major groups in the S&P 500 fell, with losses led by the index’s most influential group — technology. The “Big Seven” index of giant companies fell 3.4%. The Dow Jones Industrial Average lost 1%. The Russell 2000 index of smaller companies fell 2%.

The yield on 10-year U.S. Treasury bonds was little changed at 3.72%, and the dollar rose.

Some major moves in the markets.

Stocks

The S&P 500 was down 1.7% as of 12:47 p.m. ET in New York.
The Nasdaq 100 fell 2.6%.
The Dow Jones Industrial Average fell 1%.
The MSCI World Index fell 1.5%.
The Bloomberg Magnificent 7 Total Return Index fell 3.4%.
The Russell 2000 Index fell 2%.

Currencies

The Bloomberg Dollar Index rose 0.2%.
The euro fell 0.4% to $1.1071.
The pound fell 0.5% to $1.3113.
The Japanese yen rose 0.7% to 142.51 yen per dollar.

Cryptocurrencies

Bitcoin fell 4% to $53,854.13
Ether price fell 4.7% to $2,254.98

Bonds

The yield on the 10-year US Treasury note was little changed at 3.72%.
The yield on the 10-year German bond fell by four basis points to 2.17%.
The yield on the 10-year British bond fell three basis points to 3.89%.

Goods

West Texas Intermediate crude fell 2.6% to $67.37 a barrel.
Spot gold fell 1.2% to $2,485.31 an ounce.

This story was produced with the help of Bloomberg Automation.