U.S. stocks closed lower on Friday, pressured by a jobs report that showed the labor market continued to slow but left traders uncertain about how far the Federal Reserve will go in cutting interest rates.
The S&P 500 and Dow Jones indices recorded their biggest weekly declines since March 2023, and the Nasdaq index recorded its biggest weekly decline since January 2022.
U.S. employers added 142,000 jobs in August, less than analysts had expected, and July job growth was revised down to 89,000, also below estimates, the Labor Department said.
Traders were betting on a 25 basis point rate cut in September at 73 percent, according to the CME Group's FedWatch tool, and bets on a 50 basis point rate cut were at 27 percent, down from a short-term spike to 51 percent after the report.
The Standard & Poor's 500 Index closed down 94.99 points, or 1.73 percent, to 5,408.42. The Nasdaq Composite Index lost 436.83 points, or 2.55 percent, to close at 16,690.83. The Dow Jones Industrial Average fell 410.34 points, or 1.01 percent, to 40,345.41.
