Wall Street Wobbles Amid Fed Rate Cut Uncertainty

Wall Street's major indexes fell as August's jobs report added to Fed rate cut uncertainty. Despite employment rising less than expected, the jobless rate's drop to 4.2% showed a labor market slowdown. Mixed performances in rate-sensitive stocks intensified market struggles, with many sectors including technology turning lower.

Wall Street's primary indexes fell on Friday as a pivotal jobs report failed to clarify the Federal Reserve's anticipated rate cut size ahead of its upcoming meeting.

The Labor Department's report indicated U.S. employment rose less than predicted in August, yet a decline in the jobless rate to 4.2% pointed to a continuing, orderly labor market slowdown. Traders, using the CME Group's FedWatch Tool, placed a 53% probability on a 25-basis point rate cut in September, with 47% betting on a 50-basis point reduction, down from a brief uptrend to 51% following the data release.

Rate-sensitive growth stocks exhibited mixed performance. Apple gained 1%, while Tesla fell 2.9% and Nvidia dropped 1.5%. Gennadiy Goldberg, head of U.S. rates strategy at TD Securities, commented, "The market is grappling with the data, which could justify either a 25- or 50-basis point rate cut."

(With inputs from agencies.)