United States benchmarks ended lower on Friday after a softer-than-expected labour market report heightened concerns over the economy, even as it bolstered expectations for a Federal Reserve interest rate cut this month.
The Dow Jones Industrial Average fell 220.43 points, or 0.5%, to 45,400.86. The S&P 500 declined 20.6 points, or 0.3%, to 6,481.5, while the Nasdaq Composite edged down 7.3 points, or 0.03%, to 21,700.4.
All three benchmarks had touched fresh record intraday highs earlier in the session before reversing.
The Bureau of Labor Statistics reported that the economy added just 22,000 jobs in August, well below market expectations of 75,000.
The unemployment rate rose to 4.3%, matching forecasts.
June payrolls were also revised to show the first monthly job loss since the pandemic, intensifying concerns about slowing momentum.
Despite the weaker data, traders see the report as reinforcing prospects of monetary easing. According to the CME Group FedWatch Tool, markets are now pricing in at least a quarter-point rate cut at the upcoming Federal Reserve meeting, with an 8% possibility of a half-point reduction.
For the week, the S&P 500 gained 0.3% and the Nasdaq advanced 1.1%, while the Dow slipped 0.3%.
On the bond markets, the 10-year Treasury yield fell 2% to 4.076%, while the 2-year yield slid 2.3% to 3.509%, both reaching multimonth lows.
