Fri Sep 05 15:00:00 UTC 2025: **News Article: Stocks Tumble After Weak Jobs Report Dampens Rate Cut Rally**

**New York, NY -** A promising rally quickly faded on Friday as major U.S. stock indexes reversed course following the release of a disappointing August jobs report. The S&P 500 closed down 0.7%, the Nasdaq Composite fell 0.5%, and the Dow Jones Industrial Average shed 314 points (0.7%). Earlier in the day, all three indexes had reached new intraday record highs, fueled by anticipation of future interest rate cuts.

The U.S. economy added only 22,000 jobs in August, significantly below the 75,000 expected by economists. The unemployment rate ticked up to 4.3%, in line with forecasts. This data has strengthened expectations for a rate cut at the Federal Reserve’s September meeting, with some traders even pricing in a potential half-point cut.

“These employment data give the Fed all the reasons it needs to shift its balance of risks and lower rates,” said Jamie Cox, managing partner at Harris Financial Group.

However, the weak jobs numbers also sparked concerns about a potential economic slowdown. JPMorgan and Wells Fargo saw declines amid fears that a slowing economy could negatively impact loan growth. Industrial giants Boeing and GE Aerospace also suffered losses.

Despite the overall downturn, Broadcom was a notable exception, soaring 10% after reporting strong quarterly results and securing $10 billion in new AI chip orders. This surge may signal increased competition for AI leader Nvidia, whose shares fell 3%.

White House economic advisor Kevin Hassett downplayed the report, calling it “a little bit disappointing” but predicting an upward revision. Commerce Secretary Howard Lutnick suggested the report would be more accurate following the recent replacement of the Bureau of Labor Statistics Commissioner.

The market’s initial positive reaction suggests investors are still hoping that rate cuts can stimulate the economy. However, the weak jobs data, including a downward revision of June payrolls, raises the specter of recessionary risks.

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