Major stock indexes ended a short, but brutal week in a deep hole thanks to a weak jobs report Friday, as major indexes punched their way below critical thresholds. Among the hardest hit were Magnificent Seven players Nvidia and Tesla, both of which took a beating on the stock market today.
The Dow Jones Industrial Average struggled to get off the mat but ultimately finished the day down 1%, near session lows. The blue-chip index undercut its 21-day exponential moving average and headed down toward its 50-day moving average.
The S&P 500 dropped 1.7%, as it sliced through its 50-day line. And already well below that threshold, the Nasdaq composite put some more miles between itself and the 50-day metric by sliding another 2.6%. It now sits close to its 40-week moving average.
For the holiday-shortened week, the tech-heavy Nasdaq plunged 5.8% while the S&P 500 dropped 4.3%. The Dow lost roughly 3% since trading resumed Tuesday after the Labor Day holiday.
In small-cap stocks, the Russell 2000 lost 1.6% for the day and 5.7% for the week. Action on Thursday and Friday pushed the Russell well below its 50-day line.
Losers beat winners on both the Nasdaq and New York Stock Exchange by more than 3-to-1. Volume also was higher on the Nasdaq and the NYSE vs. the same time Thursday.
In the bond market, the 10-year Treasury yield dropped one basis point to 3.72%. West Texas Intermediate crude oil fell 1.6% to near $68.10 a barrel.
3:33 p.m. ET
Stock Market Today: Power Services Stock Bucks Trend
Argan catapulted nearly 25% higher in enormous volume after the company crushed fiscal second-quarter profit and revenue expectations. It earnings grew 39% on 61% sales growth. Analysts predict 79% growth in fiscal 2025 and 19% in 2026.
The stock has a low average daily trading volume of 184,600 shares. Argan provides engineering, construction, project development and consulting services to the power industry.
Aspen Aerogels was the biggest loser on the IBD 50 Friday with its 7.7% loss. The stock knifed through its 50-day line in above average volume.
Shares broke out of a stage-three cup base Aug. 20, but the breakout quickly diminished. The stock now is down 25% from its 31.74 buy point.
2:18 p.m. ET
Nvidia, Tesla Have A Rough Day
Nvidia stock sank 4.6% on the stock market today, but was inching off the day's lows and holding above the psychological 100 level in recent action. The stock is 13% under its 50-day line. After plunging 7.7% last week in higher volume, Nvidia stock is down another 14% so far this week.
Meanwhile, Tesla tumbled more than 7% and sliced through its 50-day line after overtaking it on Thursday's 4.9% jump. Shares are forming a cup base with a 271 buy point.
On the positive side, DocuSign trimmed larger morning gains to 4.1% in recent trades. The company topped fiscal second-quarter adjusted earnings and sales estimates late Thursday. DocuSign also gave fiscal Q3 and fiscal 2025 profit forecasts that were above analyst estimates. The online document signing provider's profit grew 35% on 7% sales growth.
Shares retreated from the 61 level where it has found resistance. The stock is in a long, choppy undefined base with a 64.76 buy point.
11:51 a.m. ET
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Stocks moved off lows briefly on the stock market today after Federal Reserve Gov. Christopher Waller backed an interest-rate cut at the Sept. 17-18 meeting. But indexes were at session lows near midday.
The Nasdaq on Thursday pared a 1.2% intraday gain to nearly 0.3% by the close. The Nasdaq is in a distribution phase currently, hurt by four higher-volume declines since Aug. 22.
Distribution has been less pronounced on the NYSE. Headed into Friday, the S&P 500 showed two higher-volume declines since Aug. 28.
Broadcom slumped 9% after the company reported earnings. Broadcom was one of the worst performers in the Nasdaq 100, along with Super Micro Computer and Arm Holdings.
Retail stocks like Dollar General and Walgreens outperformed in the S&P 500.
10:30 a.m. ET
Jobs Report Misses Expectations
Nonfarm payrolls increased 142,000 in August, below the 160,000 consensus forecast. The unemployment rate ticked lower to 4.2% as expected. Hiring gains in June and July were revised down by 86,000 jobs.
After the data, futures traders at CME FedWatch put the chances at 59% that the Federal Reserve will cut their key lending rate by 50 basis points at the Sept. 17-18 meeting. But the chances fell to 27% near 11:30 a.m. ET
Homebuilders outperformed with the 10-year Treasury yield down anther six basis points to around 3.67%.
Toll Brothers, Leaderboard stock PulteGroup and Meritage Homes gains ranged from 1% to 3%.
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Stock Market Today: Broadcom Weighs On Market
An earnings sell-off for Broadcom also weighed on sentiment. The chip giant slumped after it reported its third straight quarter of accelerating revenue growth, helped by its acquisition of VMware. But investors focused on a revenue outlook for the October-ended quarter that was mostly in-line with expectations.
After jumping 4% Thursday on takeover rumors, Smartsheet soared another 8% after the company reported a 175% surge in quarterly profit. Revenue increased 17% to $276.4 million. Reuters on Tuesday reported that Vista and Blackstone are in talks to acquire the software maker.
Other earnings winners in the tech sector included Guidewire Software, Samsara and UiPath.
Guidewire, which offers a software platform for property and casualty insurers, jumped 13% after earnings and revenue came in well above expectations. The stock gapped out of a flat base with a 153.85 entry.
Samsara jumped 13% after the company reported another quarter of strong revenue growth. The company also raised its full-year earnings and revenue guidance. Samsara is rising past an alternative buy point at 42.49 and perhaps above Tuesday's high. Samsara provides sensors and cloud-based software to manage fleet vehicles and industrial operations.
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UiPath, which offers a robotic process automation software platform, surged early on the stock market today but pared gains on news that earnings fell 56% year over year. Revenue increased 10% to $316.3 million.
Follow Ken Shreve on X @IBD_KShreve for more stock market analysis and insight and Kimberley Koenig for more stock market news on X, @IBD_KKoenig.
