US stocks closed lower on Friday after weaker-than-expected August jobs data raised concerns about a slowing economy, even as expectations for Federal Reserve rate cuts firmed. The S&P 500 fell 0.3% and the Dow dropped 220 points, while the Nasdaq 100 was flat. The economy added just 22K jobs, well below the 75K forecast, while the unemployment rate rose to 4.3%, highlighting a cooling labor market. Traders priced in a higher likelihood of interest-rate cuts, with bets rising on a potential 50bps reduction this month. Economically sensitive sectors led the decline, with banks, energy, and industrials falling, while real estate gained on rate-cut optimism. Broadcom surged 9.4% after forecasting strong AI-driven revenue growth, while Nvidia dropped 2.7% and AMD fell 6.6% following President Trump’s warning of substantial semiconductor tariffs. Lululemon tumbled 18.6% after a second profit warning, and major banks, including JPMorgan and Wells Fargo, fell over 2.5%.