Key takeout
- The S&P 500 dropped 0.3% on Friday, September 5, 2025, mainly due to the Softjobs report that raised worries about US economic growth.
- Lululemon’s stock fell after the athletic apparel company reported disappointing sales figures, leading to a revised outlook.
- Broadcom’s shares skyrocketed after exceeding quarterly expectations, driven by strong demand for AI technology.
Major US stock indexes saw declines on Friday following the release of the latest employment report by the Bureau of Labor Statistics.
The data revealed that job additions in August were lower than anticipated, and previous estimates were revised downward, indicating that the economy experienced its first job losses since 2020 in June.
The S&P 500 closed the shortened trading week down 0.3%. The Dow fell by 0.5%, and the tech-heavy Nasdaq ended the day with a minor drop of less than 0.1%.
Lululemon Athletica’s stock dropped significantly, plummeting 18.6%. The company reported store sales that were below expectations for the second quarter, leading to reduced annual revenue guidance and slower growth due to tariffs and US sales. Some analysts, like those from Jefferies, pointed to potential challenges ahead, such as competition and concerns over the company’s new design pipeline.
Kenvue’s stock fell 9.4%. The Department of Health and Human Services, under Robert F. Kennedy Jr., announced it would publish a report suggesting a connection between Tylenol use during pregnancy and autism. This drug is produced by McNeil Consumer Healthcare, which is part of Kenvue. A representative from Kenvue disputed the claims made in the forthcoming report.
Advanced Micro Devices (AMD) saw a 6.6% decline after Seaport Research downgraded its stock from “buy” to “hold.” Analysts indicated signs of weakening demand for AMD’s AI accelerators, which raises concerns about the company’s ability to meet its ambitious goals.
On a more positive note, Broadcom’s stock surged by 9.4%, making it the top performer in the S&P 500. The jump in stock price was fueled by a 63% year-on-year increase in AI semiconductor revenue. Additionally, the company announced it had secured $10 billion in new customer orders, which it suggested included OpenAI.
Pool Corporation, a supplier of pool equipment, saw a 5.5% gain in stock price after the disappointing employment report fueled speculation about potential interest rate cuts from the Federal Reserve in their upcoming policy meeting. Easing rates could impact mortgage costs, which have recently hit lows not seen since April. This situation continues to affect the sluggish US housing market, and consequently, businesses related to homebuilding and consumer goods like pool products.
Tesla proposed a new compensation plan for CEO Elon Musk, tied to specific performance targets. Achieving these goals could elevate Tesla’s market capitalization to $8.5 trillion and lead to total vehicle deliveries of 20 million. Past negotiations over Musk’s compensation have sparked controversy, but shareholders will vote on the proposal on November 6th. Tesla shares rose by 3.7% on Friday.
