Wall Street Closes Its Worst Week Since March 2023

Weak economic data weighed heavily on the stock market, with the tech sector hit the hardest, particularly Nvidia, which fell 13.8% over the week.

Wall Street’s three main indices suffered significant declines on Friday, marking the worst week for the U.S. stock market since March 2023. Weak labor data in the U.S. triggered anxiety among investors.

The Dow Jones, which tracks 30 large corporations, dropped 1.01% to close at 40,345.41 points. The S&P 500, which includes 500 companies, fell 1.73% to 5,408.42 points. Meanwhile, the tech-heavy Nasdaq Composite tumbled 2.55%, ending at 16,690.83 points.

Non-farm payroll data fueled expectations that the Federal Reserve (Fed) might begin a more aggressive cycle of interest rate cuts this month than initially anticipated, but also raised concerns that this first adjustment could come too late.

Specifically, non-farm payrolls increased by 142,000 in August, falling short of analysts’ expectations of 161,000. Furthermore, June and July figures were revised downward, contributing to the market’s negative reaction.

Several weak reports were released throughout the week, starting with a manufacturing PMI figure that came in below expectations. Each of the major indices posted substantial losses: the Dow Jones dropped 3.21%, the S&P 500 fell 4.25%, and the Nasdaq sank 5.77%.

Tech stocks were hit the hardest, with the manufacturer of graphics cards and artificial intelligence chips, Nvidia, retreating 13.8%. This marked the worst week for the Nasdaq since June 2022 and for the S&P 500 since March 2023.