Nasdaq 100 and S&P500: Record Highs Fade Fast as Jobs Report Rattles Bulls

Stocks Hit Records, Then Fade as Weak Jobs Data Sparks Recession Worries

Markets came in hot Friday — S&P, Nasdaq, and Dow all opened strong and notched fresh record intraday highs within the first half hour of the session. But that strength didn’t stick. About 30 minutes into the cash session, buyers started stepping back, and all three indexes faded into the red. What looked like another leg higher turned into a pullback tied to concerns over the labor market.

Jobs Report Lands Soft — Is the Market Finally Blinking?

We already had the jobs data an hour before the open — and it wasn’t pretty. Just 22,000 jobs added in August versus expectations for 75,000. Traders had time to digest it, and the initial reaction was actually positive — probably because of rate-cut hopes. But once regular trading kicked in, the tone changed.

The problem? If cuts are coming because the economy’s cracking, it’s not the same bullish setup we’ve been trading on. That’s the mood shift we saw. Futures markets moved quickly — now showing an 11.6% chance of a 50-bps cut this month, which was unthinkable a few weeks ago. But again, that’s recession-fueled easing, not a victory lap for disinflation.

Cyclicals Get Sold — Is the Smart Money Getting Defensive?

The selling hit economically sensitive names hardest. Banks dropped 2.3%, energy gave up 2%, and industrials lost 1.1%. That’s not random — those groups are tied to real economic activity, and this report undercut that story. On the flip side, real estate caught a bid, up 0.7%, and the housing index popped 2% to its highest level in eight months. Lower yields helped there, but also, it’s a defensive rotation.

What stood out was how quickly momentum names lost steam. Early strength just couldn’t hold. This wasn’t aggressive selling — more like a steady fade as enthusiasm cooled.

Broadcom Pops, Lululemon Tanks — A Tale of Two Earnings Stories

Broadcom kept the AI story alive, jumping 9% to a record after forecasting stronger Q4 revenue and upbeat AI guidance into 2026. That helped lift semis, with the SOX index up 1.1%.

But Lululemon fell apart — down 18.3% after cutting guidance again. That dragged Nike down too, off 1.6%. It’s a reminder that not every stock is living in AI fantasyland.

Where Now? CPI Will Set the Tone, But Bulls Need Help

So where does that leave us? The S&P and Nasdaq still held weekly gains, but the reversal on Friday raises questions. Bulls are leaning hard on rate-cut bets, but without cooler inflation next week, it’s tough to justify a 50-bps move. If CPI runs hot, the whole “Fed saves the day” trade could wobble.

Bottom line — buyers stepped in at the open, but sellers had the last word. We’re still working off some excess. Time will tell if Friday was just a pause, or the start of something bigger.

More Information in our Economic Calendar.