US Stock Market Today: S&P, Nasdaq Retreat From Record Highs; Banking Stocks Lead Dow Decline

Following a weaker-than-expected August jobs report, the initial stock market rally on Friday faded as investor enthusiasm shifted from hopes of interest rate cuts to concerns about a slowing economy.

All three major indexes had hit new intraday highs early in the day, with the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average rising by approximately 0.5%, 0.8%, and 0.3%, respectively. However, the indices quickly pared these gains.

This reversal was triggered by the August jobs report, which showed the US economy added only 22,000 jobs, significantly less than the 75,000 economists had anticipated. The unemployment rate also increased to 4.3%, which was in line with expectations.

Despite the broader market decline, chipmaker Broadcom stood out, with its stock climbing after the company's latest quarterly results surpassed Wall Street's forecasts.

Shares of Broadcom, Equifax and Tesla were among the top gainers in the S&P index. Lululemon, AMD and Palantir were among the top draggers.

Salesforce, Home Depot, and United Health Group were among the winners on Dow Jones while Nvidia, Goldman Sachs, Citigroup and JPMorgan were among the top losers.

The sectoral indices were largely down, with eight out of 11 indices trading in the red and three trading in the green. The energy sector led the decline while the real estate sector led the rally.

Gold edged 1% higher to $3,582.2700 an ounce whereas crude oil was trading 2.22% lower at $65.05 per barrel.

The Bloomberg Dollar Index fell 0.74%, while bitcoin, the largest traded cryptocurrency, rose 0.35% to $110,796.