Major U.S. stock indexes experienced losses on Friday, with the S&P 500 declining by 0.3% as a softer-than-expected jobs report highlighted concerns regarding the trajectory of economic growth in the United States. The Bureau of Labor Statistics revealed that job additions for August fell short of expectations, and a downward revision indicated the economy had actually lost jobs in June, marking the first monthly decline since 2020.
The S&P 500’s drop was compounded by a 0.5% decrease in the Dow, while the Nasdaq, heavily influenced by technology stocks, edged down by less than 0.1%. The trading week ended on a somber note, reflecting investor anxiety over the labor market’s health.
Lululemon Athletica faced significant challenges, as the company saw its shares plummet by 18.6%—the worst performance among S&P 500 constituents. The athletic apparel manufacturer reported disappointing same-store sales growth for its fiscal second quarter and subsequently lowered its full-year revenue forecast, citing the impact of tariffs and weak domestic sales. Jefferies analysts expressed concern about heightened competitive pressures and uncertainty regarding Lululemon’s future product pipeline.
Meanwhile, shares of Kenvue fell by 9.4% following a report by The Wall Street Journal, which stated that the Department of Health and Human Services plans to release findings associating autism with the use of Tylenol by pregnant women. Kenvue, which produces the widely-used over-the-counter painkiller through its subsidiary McNeil Consumer Healthcare, contested these claims.
Advanced Micro Devices (AMD) also saw its stock decline, dropping by 6.6% after Seaport Research downgraded the company’s outlook from “buy” to “hold.” Analysts flagged weakening demand for AMD’s artificial intelligence accelerators, raising doubts about the firm’s ability to meet ambitious expectations.
In contrast, Broadcom shares surged by 9.4%, becoming the standout performer in the S&P 500. The chipmaker reported quarterly earnings that exceeded estimates, driven by a significant increase in AI semiconductor demand, with revenue in that sector soaring 63% year-over-year. The company also announced securing $10 billion in orders from a new client, later revealed to be OpenAI.
Pool Corp. shares rose 5.5% in response to the weak jobs report, which bolstered expectations for an interest rate cut at the upcoming Federal Reserve meeting. The decline in the 10-year Treasury yield—its lowest since April—could potentially ease mortgage rates, providing some relief to a housing market that has struggled due to elevated rates.
Lastly, Tesla proposed a groundbreaking compensation plan for CEO Elon Musk, potentially valued at around $1 trillion. To achieve this, Musk would need to hit specific performance targets, including raising Tesla’s market cap to $8.5 trillion and achieving 20 million vehicle deliveries. Tensions around Musk’s compensation negotiations have been high, and shareholders are expected to vote on the proposal on November 6. In anticipation, Tesla’s stock saw modest gains, increasing by 3.7% on Friday.
