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Stocks Rally As Jobs Miss Fuels Fed Rate Cut Bets Near 99%
Forbesยท2025-09-05 14:20

Company Performance - Lululemon shares are down 20% following a weak quarterly earnings report and a lowered outlook, citing difficulties due to tariffs impacting overseas manufacturing [5][7] - Broadcom shares are up 7% after reporting a 63% growth in AI sales and signing a $10 billion deal to supply AI chips to an unnamed customer, with shares up 109% from their closing low this year [5][7] Employment and Economic Indicators - The August jobs report revealed only 22,000 new jobs created, with the unemployment rate remaining at 4.3%, indicating a weakening jobs market [3][4] - Manufacturing jobs declined by 12,000 for the month and 78,000 for the year, despite companies planning significant investments in U.S. facilities [8] Market Trends - The upcoming Producer Price Index and Consumer Price Index reports are anticipated to provide insights into inflation trends, which are crucial given the current economic conditions [4][6] - The volatility in bond yields is noteworthy, with the 30-year yield recently nearing 5% before retreating to 4.78%, indicating market uncertainty [9]