Big Tech selloff overpowers job market gains

US economy adds 1.4M jobs in August

FOX Business’ Cheryl Casone breaks down the August jobs report.

U.S. equity markets were under pressure Friday, as investors continud to dump Big Tech despite more signs of an improving labor market.

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The Dow Jones Industrial Average fell 342 points, or 1.24% while the S&P 500 and the Nasdaq Composite were lower by 2.17% and 3.93%, respectively. The major averages lost between 2.78% and 4.96% on Thursday, suffering their steepest single-day declines since June.

TickerSecurityLastChangeChange %
I:DJIDOW JONES AVERAGES27887.72-405.01-1.43%
SP500S&P 5003385.39-69.67-2.02%
I:COMPNASDAQ COMPOSITE INDEX11062.170721-395.93-3.46%

Looking at the economy, U.S. nonfarm payrolls added 1.371 million workers in August, pushing the unemployment rate down to 8.4% from 10.2%, according to the Labor Department. Wall Street economists surveyed by Refinitiv were expecting the addition of 1.4 million and an unemployment rate of 9.8%.

Looking at stocks, Apple Inc., Alphabet Inc., Amazon Inc. and Microsoft Corp, — the four companies with a greater than $1 trillion market capitalization – remained under pressure after Thursday’s bruising selloff.

TickerSecurityLastChangeChange %
AAPLAPPLE INC.115.11-5.77-4.77%
GOOGALPHABET INC.1,576.80-65.04-3.96%
AMZNAMAZON.COM INC.3,186.41-181.59-5.39%
MSFTMICROSOFT CORP.208.70-8.60-3.96%

Meanwhile, Tesla Inc. shares flirted with bear market territory, down at least 20% from their peak on Aug. 31., the first day of trading at the split-adjusted price. Shares would be in a bear market at $398.66 or lower.

Elsewhere, Malaysia dropped criminal charges against Goldman Sachs Group after the firm last month agreed to a $3.9 billion settlement amid allegations it aided in the theft of billions of dollars from the government’s 1MDB investment fund.

TickerSecurityLastChangeChange %
TSLATESLA INC.382.87-24.13-5.93%

Looking at earnings, Docusign Inc. reported earnings and revenue that exceeded Wall Street estimates and also gave full-year guidance that outpaced expectations.

Gunmaker Smith & Wesson Brands Inc. reported revenue in the three months through June surged 125% to a record $277.97 million.

TickerSecurityLastChangeChange %

In commodities, West Texas Intermediate crude oil slipped $1.07 to $40.30 per barrel and gold dropped $4.20 at $1,933.60 an ounce.

U.S. Treasurys were lower, pushing the yield on the 10-year note up 4.4 basis points to 0.666%.


In Europe, Germany’s DAX climbed 1.08%, while France’s CAC and Britain’s FTSE slid 0.44% and 0.15%, respectively.

Asian markets finished lower across the board with Hong Kong’s Hang Seng sliding 1.25%, Japan’s Nikkei declining 1.11% and China’s Shanghai Composite dropping 0.88%.

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