US equity indexes fell with government bond yields after midday on Friday as August nonfarm payrolls grew less than forecast and prints for the previous two months were revised downwards.
The S&P 500 index dropped 1.8% to 5,406.9, with the Dow Jones Industrial Average down 1.1% to 40,320.2 and the Nasdaq Composite 2.6% lower at 16,683.9. All sectors were down intraday, led by technology, communication services, and consumer discretionary.
In economic news, nonfarm payrolls climbed by 142,000 last month, the Bureau of Labor Statistics reported. The consensus was for a 165,000 increase, as per a survey compiled by Bloomberg. July payrolls saw a downward revision to an 89,000 gain and June payrolls were revised down to a 118,000 increase, resulting in a net downward revision of 86,000 jobs.
The August unemployment rate slipped to 4.2% from July's 4.3%, as expected.
The CBOE's Volatility Index (VIX), also known as the fear index, soared 18% to 23.45.
Treasury yields fell, with the 10-year down 4.2 basis points to 3.69% and the two-year 7.9 basis points lower at 3.67%.
West Texas Intermediate crude oil slumped 2.5% to $67.42 a barrel.
In company news, Broadcom (AVGO) shares sank 9% intraday, the worst performer in the S&P 500 and the Nasdaq, after the company late Thursday guided for fiscal Q4 revenue of about $14 billion, narrowly missing the $14.04 billion forecast from analysts polled by Capital IQ.
JPMorgan downgraded Super Micro Computer (SMCI) to neutral from an overweight rating. Shares of Super Micro were trading down 6% intraday, the second steepest decline in the two indexes.
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