Wall Street closed lower on Friday, pulled down by energy and financial stocks. Investors priced in signs of a sharp slowdown in August job growth against optimism that the Fed may move toward cutting interest rates soon. All three benchmark indexes closed in the red.

How Did the Benchmarks Perform?

The Dow Jones Industrial Average (DJI) fell 0.5%, or 220.43 points, to close at 45,400.86. Twenty components of the 30-stock index ended in negative territory, while 10 ended in positive territory.

The tech-heavy Nasdaq Composite slid 7.31 points, remaining virtually unchanged to close at 21,700.39.

The S&P 500 lost 20.58 points, or 0.3%, to close at 6,481.50. Five of the 11 broad sectors of the benchmark index closed in the red. The Energy Select Sector SPDR (XLE), the Financials Select Sector SPDR (XLF) and the Industrials Select Sector SPDR (XLI) declined 1.9%, 1.8% and 0.4%, respectively, while the Real Estate Select Sector SPDR (XLRE) advanced 1%.

The fear gauge CBOE Volatility Index (VIX) decreased 0.8% to 15.18. A total of 16.95 billion shares were traded on Friday, higher than the last 20-session average of 16.05 billion. Advancers outnumbered decliners by a 1.87-to-1 ratio on the NYSE and by 1.42-to-1 on the Nasdaq.

Jobs Report Casts a Pall on Wall Street

On Friday, Wall Street was dominated by a profoundly soft August jobs report from the Labor Bureau that revealed that the U.S. economy added just 22,000 jobs, well beneath consensus expectations of around 80,000, and included downward revisions to previous months. The number for July, however, was revised to 79,000 jobs from the previously reported 73,000. This data triggered concerns about the labor market’s strength and economic resilience, and amplified expectations that the Fed may move to cut interest rates, possibly as early as mid-September, with a potential 25 bps cut now highly anticipated. In fact, murmurs of a 50-bps cut are also making the rounds.

The markets opened on a hopeful note on Friday with rate-cut expectations lifting sentiment, but equity gains quickly reversed. Bond markets responded decisively, with yields tumbling, especially the benchmark 10-year Treasury, which underscored the rush to safety and reinforced the prospect of imminent policy easing. Financial stocks were among the worst hit.

Consequently, shares of Wells Fargo & Company (WFC Quick QuoteWFC - Free Report) and JPMorgan Chase & Co. (JPM Quick QuoteJPM - Free Report) fell 3.5% and 3.1%, respectively. WFC currently carries a Zacks Rank #3 (Hold), while JPM boasts a Zacks Rank of (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Oil Prices Weigh on the Markets

Oil prices also declined on Friday after the nonfarm payrolls report clouded the outlook for energy demand, while expectations of rising supply ahead of an OPEC and allies’ meeting this weekend added further pressure. Brent crude closed at $65.50/barrel, falling $1.49, or 2.22%. WTI crude closed at $61.87, sliding $1.61, or 2.54%.

Weekly Roundup

For the week ending Sept. 5, 2025, U.S. stocks were mixed as weak August job growth, shifting Fed expectations and global uncertainties shaped sentiment. The S&P 500 gained about 0.3% and the Nasdaq rose 1.1%, boosted by tech strength and hopes of imminent rate cuts, while the Dow slipped 0.3% amid recession fears. Treasury yields fell as investors sought safety, and oil prices dropped on softer demand prospects ahead of the OPEC meeting. Trade tensions and macroeconomic headwinds added volatility, favoring growth sectors while traditional industrials underperformed.

Economic Data

The Labor Bureau reported that the unemployment rate for August had increased to 4.3%. The number for July remained unchanged at 4.2%. The average workweek for August remained unchanged at 34.2 hours, while the number for July was revised down to 34.2 from the previously reported 34.3. Average hourly earnings increased 0.3% in August after increasing by the same percentage in July.