A number of stocks fell in the afternoon session after a surprisingly weak August jobs report fueled concerns of a cooling economy but also raised expectations for Federal Reserve interest rate cuts.
Shares of fintech mortgage provider Rocket Companies (NYSE:RKT) jumped 6% in the afternoon session after positive momentum continued as stockholders approved the company's $9.4 billion all-stock merger with Mr. Cooper Group Inc.
Shares of residential solar energy company Sunrun (NASDAQ:RUN) jumped 10.2% in the afternoon session after the stock rebounded following several positive analyst actions and favorable sector-wide news. RBC Capital upgraded the stock to "Outperform" from "Sector Perform," and Wells Fargo raised its price target, with both citing increased clarity on long-term opportunities following recent U.S. Treasury guidance. GLJ Research also upgraded its rating on the company. This guidance appears to be a key factor, with analysts noting it's favorable for the residential solar sector. Adding to the positive sentiment for renewable energy, India announced it was more than halving its goods and services tax on related equipment, including solar panels, from 12% to 5%, shoring up the industry.
Shares of investment banking firm Jefferies Financial Group (NYSE:JEF) fell 2% in the afternoon session after a surprisingly weak August jobs report sparked fears of an economic slowdown. The U.S. economy added only 22,000 jobs, significantly missing the 75,000 expected by analysts. While the disappointing data initially fueled hopes for a Federal Reserve interest rate cut, investor sentiment quickly soured. Concerns shifted towards the possibility of a recession, as the sluggish hiring and a rise in the unemployment rate to 4.3%—the highest since 2021—painted a grim picture of the labor market. This negative outlook overshadowed the potential for monetary easing, leading to a widespread sell-off across Wall Street.
Shares of financial services company Ameriprise Financial (NYSE:AMP) fell 4.3% in the afternoon session after a much weaker-than-expected U.S. jobs report sparked concerns about an economic slowdown.
Shares of online legal service provider LegalZoom (NASDAQ:LZ) fell 4.1% in the afternoon session after the U.S. Labor Department's August jobs report came in much weaker than expected, sparking fears of an economic slowdown. U.S. employers added only 22,000 jobs last month, significantly missing the 75,000 that economists had forecast. The disappointing data led to a widespread sell-off on Wall Street, with major indices like the S&P 500 and Dow Jones Industrial Average trading lower. While a cooling labor market could prompt the Federal Reserve to cut interest rates, the scale of the miss has investors worried that the economy could be heading for a recession. This negative sentiment is weighing on the broader market, impacting individual stocks like LegalZoom.
Shares of insurance giant Allstate (NYSE:ALL) fell 3.2% in the afternoon session after a government report showed U.S. employers hired far fewer workers in August than economists expected. The disappointing jobs data sparked concerns on Wall Street that the U.S. economy might be slowing down too quickly, potentially signaling a recession. This uncertainty led to a widespread decline in stocks, with the S&P 500 falling 0.6% and the Dow Jones Industrial Average dropping 0.7% in morning trading. Investors reacted by selling off shares across various sectors, and Allstate was not immune to the negative market sentiment, despite some recent positive news, including a reiterated "Outperform" rating from BMO Capital.
Shares of financial services company Robinhood (NASDAQ:HOOD)
fell 2.3% in the afternoon session after a weak U.S. jobs report sparked broader economic concerns, affecting brokerage firms and banks. The disappointing labor market data raised worries about the health of the economy, which could lead to reduced trading activity on platforms like Robinhood. Furthermore, the report led to speculation about potential interest rate cuts, a development that can put pressure on financial companies.
Shares of financial services firm Stifel Financial (NYSE:SF) fell 2.6% in the afternoon session after a weaker-than-expected U.S. jobs report sparked broader market concerns about a potential economic downturn. The U.S. Labor Department's report indicated that employers hired fewer workers in August than economists had forecast. Furthermore, previous hiring estimates for June and July were revised downward by a collective 21,000 jobs. This disappointing data follows other recent lackluster economic reports, leading traders to bet on a near-100% probability of a Federal Reserve interest rate cut at its next meeting. The broader market slipped as investors grappled with whether the job market has slowed just enough to warrant a rate cut or so much that it signals an impending economic downturn.
Shares of financial services firm Raymond James Financial (NYSE:RJF) fell 3.3% in the afternoon session after the broader market slipped following the release of a jobs report that raised concerns about the health of the U.S. economy. The U.S. Bureau of Labor Statistics reported that employers added only 22,000 jobs in the last month, significantly missing the 75,000 that economists had anticipated. Additionally, the unemployment rate increased to 4.3%, its highest level since 2021. While the weaker-than-expected data strengthens the case for the Federal Reserve to cut interest rates, it also fueled investor fears of an economic slowdown. The negative sentiment impacted the wider market, with the S&P 500 and Dow Jones Industrial Average also trading down during the session, indicating a broad-based sell-off rather than company-specific news.
Shares of global insurance giant AIG (NYSE:AIG) fell 3.3% in the afternoon session after a significantly weaker-than-expected U.S. jobs report sparked concerns about the health of the economy. According to the U.S. Bureau of Labor Statistics, non-farm payrolls increased by only 22,000 in August, a figure substantially below expectations. This disappointing data suggests a potential slowdown in economic activity. For a major insurance and financial services provider like AIG, a cooling economy can translate to lower business volumes and potential headwinds for its investment portfolio, leading to negative investor sentiment.
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Let's delve into the developments on the US markets one hour before the close of the markets on Friday. Below, you'll find the top gainers and losers within the S&P500 index during today's session.
Building products company Quanex (NYSE:NX) reported Q2 CY2025 results exceeding the market’s revenue expectations, with sales up 76.7% year on year to $495.3 million. On the other hand, the company’s full-year revenue guidance of $1.82 billion at the midpoint came in 1.6% below analysts’ estimates. Its non-GAAP profit of $0.69 per share was 18.1% below analysts’ consensus estimates.
Fashion conglomerate G-III (NASDAQ:GIII) reported Q2 CY2025 results beating Wall Street’s revenue expectations, but sales fell by 4.9% year on year to $613.3 million. On the other hand, next quarter’s revenue guidance of $1.01 million was less impressive, coming in 99.9% below analysts’ estimates. Its non-GAAP profit of $0.25 per share was significantly above analysts’ consensus estimates.
Used-car retailer America’s Car-Mart (NASDAQ:CRMT) missed Wall Street’s revenue expectations in Q2 CY2025, with sales falling 1.5% year on year to $341.3 million. Its non-GAAP loss of $0.69 per share was significantly below analysts’ consensus estimates.
Let's have a look at what is happening on the US markets one hour before the close of the markets on Friday. Below you can find the top gainers and losers in today's session.
A number of stocks fell in the afternoon session after a weaker-than-expected August jobs report heightened concerns about the health of the U.S. economy.
A number of stocks fell in the afternoon session after the latest jobs report showed nonfarm payrolls rose by only 22,000, significantly below the forecasted 75,000.
A number of stocks fell in the afternoon session after a much weaker-than-expected jobs report fueled concerns about a slowing economy and its impact on consumer spending.
