By Gokhan Ergocun
ISTANBUL (AA) - The New York Stock Exchange ended Friday with losses as weak employment data heightened concerns about an economic slowdown and dampened optimism about interest rate cuts.
The Dow was down 0.48%, or 220.43 points, to close at 45,400.86.
The Nasdaq dipped 0.03%, or 7.31 points, to close at 21,700.39, while the S&P 500 was off 0.38%, or 20.58 points, to 6,481.5.
The Volatility Index (VIX), also known as the “fear index," dropped 0.78% to 15.18.
While investors assessed data released throughout the week on the US labor market, the indices started the day higher on expectations of interest rate cuts but closed lower.
Following data on JOLTS Open Job Count, ADP Private Sector Employment, and weekly unemployment claims indicating weakening labor market conditions, data released Friday showed employment growth slowed significantly last month.
Accordingly, nonfarm payrolls in the US increased 22,000 in August, falling short of expectations, while the unemployment rate rose to 4.3%, its highest since October 2021.
The weak employment data reinforced expectations that the Fed will cut interest rates by 25 basis points at its meeting Sept. 16-17.
In addition, the possibility of the Fed cutting interest rates by 50 basis points this month was also priced in.