Economic concerns rise as major stock market indices decrease following the release of job statistics, casting doubts on the state of the economy.

U.S. stocks ended slightly lower on Friday, with the Dow Jones Industrial Average falling 220.43 points, the S&P 500 losing 20.58 points, and the Nasdaq Composite dropping 7.31 points.

The U.S. economy created 22,000 jobs last month, below expectations of 75,000, which weighed on the market. However, the rate-cut expectations helped the real estate sector end 1% higher, with the Philadelphia Housing Index jumping 2.1%.

Broadcom, a leading semiconductor company, unveiled a $10 billion artificial intelligence chip order from a new customer. The customer, OpenAI, will reportedly receive custom AI chips worth more than ten billion US dollars for AI accelerators to be launched from 2026 onwards. This news boosted Broadcom shares, which rose 9.4%.

Broadcom also forecast fourth-quarter revenue above estimates. Despite this positive news, the S&P 500 bank index ended 2.4% lower.

The monthly U.S. consumer price index is due on Thursday. Meanwhile, traders of futures tied to the Fed's policy rate boosted bets for quick succession rate cuts. The U.S. rate futures market has priced in a 7% chance that the Fed will cut by 50 bps when it meets on September 16-17, and a 93% probability of the more standard 25 bp cut.

Bill Merz, head of capital markets research and portfolio construction at U.S. Bank Asset Management, stated that the payroll report confirms a softening labor market and justifies a rate cut at the Fed meeting later this month. Pete Mulmat, CEO of IG North America, stated that it would take more than one bad data set to dislodge the market at this point.

BofA Global Research adjusted its outlook following the report, forecasting one quarter-point cut each in September and December. Advancing issues outnumbered decliners by a 1.87-to-1 ratio on the NYSE, and 2,704 stocks rose and 1,899 fell on the Nasdaq.

Shares of Kenvue fell 9.3% after the Wall Street Journal reported that U.S. Health Secretary Robert F. Kennedy Jr. plans to announce that use of Kenvue's pain medication Tylenol in pregnant women is potentially linked to autism.

For the week, the Dow fell 0.3%, the S&P 500 gained 0.3%, and the Nasdaq rose 1.1%. The major indexes ended well off their lows of the session.

Economic concerns rise as major stock market indices decrease following the release of job statistics, casting doubts on the state of the economy.