Nasdaq 100 and S&P500: US Stocks Retreat as Labor Miss Fuels Growth Worries

S&P 500 Pulls Back After Record Highs as Soft Jobs Data Fuels Rate Cut Bets

Stocks are under pressure in mid-morning trade after opening higher on fresh hopes of Federal Reserve rate cuts. All three major indexes—S&P 500, Nasdaq, and Dow—briefly touched new record intraday highs in the first hour before pulling back. Traders are weighing a weaker-than-expected August jobs report against concerns about economic momentum.

The U.S. economy added just 22,000 jobs last month, well below the 75,000 estimate. The unemployment rate has ticked up to 4.3%, matching expectations. Fed funds futures now reflect a high probability of a quarter-point cut at the September 17 meeting, with rising odds of a half-point move. Bond yields are moving lower as investors recalibrate interest rate expectations.

Are the Indexes Losing Steam After Early Gains?

Yes. Around 90 minutes into the session, the S&P 500 is pulling back after rising as much as 0.5%. The Nasdaq, which had jumped 0.8% at the open, is also in retreat, while the Dow has slipped from a 0.3% intraday high. Despite the reversal, the S&P and Nasdaq remain modestly higher on the week, with the Dow underperforming.

Which Sectors Are Leading Today’s Moves?

Financials are leading sector declines, down 1.99%, as banks and brokers react to falling yields and growing rate cut odds. Energy is also down 1.82%, with crude prices under pressure. Industrials have lost 1.13%, reflecting broader risk aversion.

Defensive areas are faring better. Real estate is up 0.49% as lower rates support rate-sensitive REITs. Consumer staples and healthcare are modestly higher, suggesting some rotation into more stable names as macro concerns build.

What Stocks Are Traders Watching Closely?

Broadcom is the standout gainer this morning, up 9.8%, after the chipmaker topped earnings forecasts and disclosed $10 billion in AI chip orders from a new customer. Micron, Enphase, and Equifax are also among the top S&P 500 performers.

On the downside, Lululemon is plunging 17.6% after cutting its profit outlook. AMD is off 6.6%, and Charles Schwab has dropped more than 5% as rate-sensitive financial names come under pressure. Interactive Brokers and Ameriprise are also sliding.

What Should Traders Expect Through the Session?

The softer jobs data is fueling expectations for a policy shift at the Fed’s next meeting, but the tone in equities is turning cautious. With intraday momentum fading, traders are watching bond yields, Fed commentary, and upcoming inflation readings to confirm whether rate cuts can keep risk appetite intact—or if recession fears begin to dominate the tape.

More Information in our Economic Calendar.