Investors showed little enthusiasm for the August jobs report, as the slower-than-expected hiring numbers deepened worries about a softening labor market.

The U.S. economy added 142,000 nonfarm jobs in August, up from July’s 89,000 but falling short of the projected 160,000. The unemployment rate edged down by 0.1% to 4.3%, in line with expectations, while wages saw stronger-than-anticipated growth, rising 0.4% month-over-month.

On Friday, markets shifted sharply into risk-off mode, with all major indices dropping over 1% by midday trading in New York.

The CBOE Volatility Index (VIX) spiked over 17% to 23 points. The Nasdaq 100 led the decline, losing over 5% for the week, eyeing its worst performance since September 2022.

Semiconductors dragged down the tech-heavy index. The iShares Semiconductor ETF SOXX dropped nearly 5%, while Nvidia Corp. NVDA fell more than 4%. The chipmaker giant extended the weekly loss to 14%, on track for its steepest decline since October 2022.

Investors dumped equities and moved into cash as the U.S. dollar strengthened despite weaker-than-expected nonfarm payroll data.

In the bond market, short-term Treasury yields tumbled, bringing the yield curve back to a normal shape after two years of inversion. The two-year Treasury yield fell below the 10-year, signaling a shift in economic outlook.

Commodities took heavy losses across the board. Gold dropped 0.9%, silver plunged 3.1% and crude oil (WTI) slid 3%, reaching $66 per barrel, the lowest since May 2023.

Bitcoin BTC/USD also dropped, losing over 3%, as investors steered clear of crypto assets amid a broad-based decline in risk appetite.

Friday’s Performance In Major US Indices, ETFs

According to Benzinga Pro data:

• The SPDR S&P 500 ETF Trust SPY was 1.8% lower to $539.77.
• The SPDR Dow Jones Industrial Average DIA fell 1.1% to $404.13.
• The tech-heavy Invesco QQQ Trust Series QQQ tumbled 2.7% to $448.38.
• The iShares Russell 2000 ETF IWM fell 2.2% to $207.31.
• The Consumer Staples Select Sector SPDR Fund XLP outperformed, flat for the day, while the Technology Select Sector SPDR Fund XLK lagged, down 3%.

Friday’s Stock Movers

• Broadcom Inc. AVGO tumbled 9.9%, on track for its worst session since March 2020, following weaker-than-expected guidance.
• Other stocks reacting to earnings included Samsara Inc. IOT, up 13%, Guidewire Software Inc. GWRE, up 11.8% and DocuSign Inc. DOCU, up 3.9%.
• Super Micro Computer Inc. SMCI plummeted over 7% as JPMorgan downgraded the rating from Buy to Neutral and sharply lowered its price target from $950 to $500.

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Photo created using artificial intelligence via Dall-E.