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CPI hits 3-year low: How will it sway the Fed rate decision?
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Wall Street Today | Broadcom Leads Tech Lower, Market Falls After Weak Jobs and Cutting Fedspeak

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Moomoo Recap US joined discussion · Sep 6 15:04
Wall Street Today | Broadcom Leads Tech Lower, Market Falls After Weak Jobs and Cutting Fedspeak
The market fell Friday, ending a short but volatile week for stocks: September started with a pullback. The S&P 500 fell below the historic 5,500 point mark Thursday, a level reached in June, broken through with an August pullback, and now hit again in the first sessions of September.
Within indexes, the downward direction of the market was clear Friday. Just past the 4 pm close the     $S&P 500 Index (.SPX.US)$ traded down 1.73%, the         $Dow Jones Industrial Average (.DJI.US)$ fell 1.01%, and the     $Nasdaq Composite Index (.IXIC.US)$ fell a dramatic 2.55%.
MACRO
Friday, the economy added 142k nonfarm payrolls, and the Unemployment rate landed at 4.2% in August, according to the Bureau of Labor Statistics. Payrolls were below expected by 20k, but fit the narrative of softening labor in the U.S. that investors have come to expect. The CME Fedwatch futures tracker shows the chances of an FOMC rate cut during the committee's upcoming September 17-18 meeting as more than 50%.
Speaking of the Fed, investors also got word from New York Fed President John Williams Friday that it is time to cut rates.
Speaking toward the Council on Foreign Relations, Williams said the economy is balanced, and inflation is tracking lower, and "it is now appropriate to dial down the degree of restrictiveness in the stance of policy by reducing the target range for the federal funds rate."
Thursday, initial jobless claims figures from the Department of Labor Statistics came in at 227K, below last week's 230k. ADP numbers for private payrolls added to the economy showed just 99k jobs added in the past month, far below the 140k expected and the lowest number from ADP since 2021.
Wednesday, the JOLTS job openings came in lower than expected at 7.6M vs 8M. It is the lowest hiring data for open positions since 2021. Tuesday, the S&P PMI and ISM PMI index numbers came out lower than estimated, with ISM at 47.2 vs 47.5 and S&P at 47.9 vs 48, compared to last month's 46.8 and 49.6, respectively.
SECTORS
$Crude Oil Futures(DEC4) (CLmain.US)$ continued to fall Friday, despite a decision from OPEC+ to not increase supply this week.  
$Bitcoin (BTC.CC)$ hovered near $53k, Gold pulled back from its high.       $U.S. 2-Year Treasury Notes Yield (US2Y.BD)$ and the       $U.S. 10-Year Treasury Notes Yield (US10Y.BD)$ both fell, and the 2-year was below the 10 year again.
Sam Goldfarb from the Wall Street Journal that an inverted yield curve--were lon term Treasurys notes hava smaller yied than short term notes has been taken as a sign a reession was looming or ongoing. This time has already been different, given that the inversion lasted for a record stretch even as the economy remained in good shape, he argued.
MOOVERS
$Broadcom (AVGO.US)$ fell 10% Friday after the firms results Thursday showed adjusted earnings of $1.24 per share, on revenue of $13B for the quarter, above estimates. Revenue grew 47% year over year for the quarter, but the stock fell after hours Thursday after the firm's forward revenue guidance of $14B came in lower than estimates of $14.3B for the coming quarter.
$Super Micro Computer (SMCI.US)$ fell 6% Friday, after a JPM analyst cut from Neutral to Overweight and slashed their price target to $500 from $950. August was the stock's worst monthly performance on record, seeing a price drop of 37% as the company battled against a short-seller report and announced the 10-K filing delay.
$NVIDIA (NVDA.US)$  hit its worst week for two years with a fall on Friday. Shares were off 14.5% this week as of Friday afternoon; they lost 16.1% in the week ended Sept. 2, 2022, and fell 13.6% in the week that ended April 19 of this year.
$GameStop (GME.US)$, $Chewy (CHWY.US)$, and $AMC Entertainment (AMC.US)$ saw price fluctuations Friday afterRoarinKitty posted on twitter a meme from "Toy Story 2" in which Woody is dropped by Andy and andy says "I don't want to play with you anymore." In Kittys meme, there was a dog cartoon on Woodys face.
Within industries tracked by moomoo, Semiconductors pulled back 4% to match Nvidias fall. Auto Manufacturers also pulled back following a 5% drop in $Tesla (TSLA.US)$ .
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