Stock market today: Stocks open higher after jobs report shows more cooling


US stocks opened higher on Friday as investors digested a crucial jobs report that provided clues to the size of this month’s expected interest rate cut and the resilience of the US economy.

Tech stocks reversed earlier losses, with the Nasdaq Composite (^IXIC) up about 0.2% in early trading. The S&P 500 (^GSPC) and Dow Jones Industrial Average (^DJI) were also up around 0.2% each.

The US economy added 142,000 jobs in August, which trailed expectations for about 165,000 jobs added. Prior month job growth was also revised lower, as the labor market showed signs of continued cooling. The unemployment rate, however, ticked back down to 4.2%.

The report shifted expectations for the Fed to enact a more sizable rate cut at its meeting in less than two weeks. According to the CME FedWatch tool, traders see a 50-50 chance of a 50 basis point cut, which was up significantly from Thursday.

Despite anemic closes, stocks have whipsawed this week as the market assessed incoming economic data to set expectations on the size of the Fed’s rate cut. All three indexes are set for significant weekly declines.

Read more: Fed predictions for 2024: What experts say about the possibility of a rate cut

Meanwhile, in corporate news, chipmaker Broadcom’s (AVGO) shares fell in early trading on the heels of a lackluster sales forecast. While the Apple supplier is benefiting from a surge in AI spending, its other divisions are falling short.

Live2 updates

  • Stocks open higher as jobs report points to more labor market cooling

    Stocks opened higher on Friday as markets digested the August jobs report, which showed a slight decline in the unemployment rate to 4.2% as the labor market added fewer jobs than expected.

    All three major indexes opened about 0.2% higher following earlier losses.

  • August jobs report: Unemployment rate falls to 4.2%, labor market adds 142,000 jobs

    The US economy added fewer jobs than expected in August while the unemployment rate ticked lower.

    Data from the Bureau of Labor Statistics released Friday showed the labor market added 142,000 nonfarm payroll jobs in August, fewer additions than the 165,000 expected by economists.

    Meanwhile, the unemployment rate fell to 4.2% from 4.3% in July. August job additions came in higher than the revised 89,000 added in July. Additionally, revisions to the June and July labor reports showed the US economy added 86,000 fewer jobs than initially reported in those months.

    Wage growth, an important measure for gauging inflation pressures, rose to 3.8% year over year, up from a 3.6% annual gain in July. On a monthly basis, wages increased 0.4%, higher than the 0.2% seen the month prior.

    Also in Friday’s report, the labor force participation remained flat from the month prior at 62.7%.



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