US Stocks Decline on Weak Jobs Report, Broadcom-OpenAI Partnership, and Powerball Reaches $1.8B Jackpot

US stocks fell on a weak August jobs report. AMD and Nvidia shares dropped on reports of a Broadcom-OpenAI partnership. The Powerball jackpot reached $1.8B.

US stocks experienced a sharp decline on Friday, September 2, following the release of a weak August jobs report. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all suffered significant losses, with the Dow falling by 302 points (-0.66%) and the S&P 500 down 0.7% [1]. The unemployment rate rose to 4.3%, the highest level in nearly four years, and the number of jobs added was significantly lower than expected, at just 22,000 [1].

The weak jobs data reinforced the case for a Federal Reserve rate cut at its September 17 meeting, leading to immediate turmoil across markets. Stocks initially surged on the prospect of cheaper borrowing costs but quickly reversed as investors digested the economic slowdown behind the Fed’s likely pivot [1].

Adding to the market's turmoil, shares of AMD and Nvidia dropped on reports of a new partnership between Broadcom and OpenAI. OpenAI, the creators of the famed AI chatbot ChatGPT, has reportedly entered into a long-term agreement with Broadcom to develop custom AI accelerators, aiming to reduce its reliance on NVIDIA GPUs for training future models [2]. This strategic move seeks to lower expenses while maintaining AI performance, signaling a shift in the AI hardware market dominated by NVIDIA's expensive GPU solutions.

Meanwhile, the Powerball jackpot reached an estimated $1.8 billion for Saturday's drawing, the second-largest jackpot in U.S. lottery history. The cash value is now up to $826.4 million [3]. The excitement is building among players as they look forward to the historic jackpot.

Investors will be closely watching the Fed's September 17 meeting, as well as the upcoming CPI inflation report and corporate earnings guidance from Q3, to gauge the economic health and potential policy responses from the central bank.

References:
[1] https://economictimes.indiatimes.com/news/international/us/us-stock-market-crashes-dow-sp-500-nasdaq-all-lost-after-shocking-august-jobs-report-possible-fed-rate-cut-ahead/articleshow/123722243.cms?from=mdr
[2] https://www.tweaktown.com/news/107584/openai-to-move-away-from-nvidia-gpus-with-new-broadcom-partnership/index.html
[3] https://6abc.com/post/powerball-jackpot-grows-estimated-18-billion-saturday-nights-drawing/17748858/