US jobs data boosts rate cut hopes but stocks slide

Weather - Sydney 10°C

US jobs data boosts rate cut hopes but stocks slide

ECONOMY 05.09.2025

Weak US jobs data cemented expectations of an interest rate cut later this month on Friday but stocks slid on worries about the economic outlook and profit-taking.

Change text size:

Wall Street's three main indices opened in positive territory after official data showed the US economy added 22,000 jobs last month, down from July's 79,000 figure. But then they quickly turned lower.

Analysts had expected the figures to confirm a cooled labour market as companies pull back on hiring amid ongoing uncertainty over President Donald Trump's tariffs.

Ahead of the figures, the market had already largely priced in an interest rate cut of a quarter percentage point, or 25 basis points, when the US Federal Reserve holds its monetary policy meeting later this month.

But the numbers were well below the 77,000 jobs analysts had expected.

"An initially positive reaction to today’s weak payrolls report has given way to some classic 'buy the rumour, sell the fact' action," said Chris Beauchamp, chief market analyst at investing and trading platform IG.

"Traders are battling a mix of relief that today's report confirms a September rate cut while being worried that weak period of job growth spells stagflation ahead."

Stagflation is a period of little to no economic growth coupled with high inflation and elevated unemployment.

The jobs data also sent the dollar and US Treasury yields lower, while gold hit a new record high.

Gold has benefitted as refuge for investors turning away from long-term bonds, which have recently been hit by concerns about debt sustainability.

Gloomy economic data has recently supported stocks as investors see it as boosting chances the Fed will cut interest rates, which is positive for businesses.

However, "as concerns about the economy grow, we could see stocks struggle," warned Kathleen Brooks, research director at trading group XTB.

European stocks ended the day lower.

In Asia, China's blue-chip CSI 300 benchmark recovered after falling 2.1 percent the previous day -- the largest drop since early April when Trump's tariff threats caused the index to drop more than seven percent in one day.

An August rally in Chinese stocks, fuelled by surging shares in semiconductor firms, ground to a halt this week, with Cambricon Technologies tumbling 14 percent Thursday on reports of a regulatory clampdown.

Tokyo also climbed after Trump signed an order to lower tariffs on Japanese autos to 15 percent from 27.5 percent.

Oil prices extended losses in anticipation of excess supply in the coming months as OPEC+ nations, which include Saudi Arabia and Russia, are expected to further unwind production cuts this weekend.

Oil has tumbled more than 12 percent this year as global producers outside OPEC+ ramp up supply and tariffs curb demand.

Shares in Tesla climbed 3.1 percent after the board of the US electric vehicle maker proposed a pay package for CEO Elon Musk that could top $1 trillion if certain performance milestones are met.

- Key figures at around 1530 GMT -

New York - Dow: DOWN 0.5 percent at 45,394 points

New York - S&P 500: DOWN 0.5 percent at 6,471.36

New York - Nasdaq Composite: DOWN 0.3 percent at 21,645.98

London - FTSE 100: DOWN less than 0.1 percent at 9,208.21 (close)

Paris - CAC 40: DOWN 0.3 percent at 7,674.78 (close)

Frankfurt - DAX: DOWN 0.7 percent at 23,596.98 (close)

Tokyo - Nikkei 225: UP 1.0 percent at 43,018.75 (close)

Hong Kong - Hang Seng Index: UP 1.4 percent at 25,417.98 (close)

Shanghai - Composite: UP 1.2 percent at 3,812.51 (close)

Euro/dollar: UP at $1.1748 from $1.1649 on Thursday

Pound/dollar: UP at $1.3535 from $1.3437

Dollar/yen: DOWN at 146.95 yen from 148.45 yen

Euro/pound: UP at 86.83 from 86.72 pence

West Texas Intermediate: DOWN 3.0 percent at $61.55 per barrel

Brent North Sea Crude: DOWN 2.8 percent at $65.14 per barrel

burs-rl/rmb

D.Kelly--TNT

Featured

Carney touts Canada 'pivot' away from US as tariffs rise

Canadian Prime Minister Mark Carney on Tuesday said reducing economic ties with the United States would come at a cost but the long-term benefits were clear, as retaliatory tariffs on US products took effect.

The "Everlasting Battery" Inside Your Joints:UConn Professor's Self-Powered Healing Material just Got Acquired

A material that turns your own movement into medicine has just landed a corporate home. PetVivo Holdings (OTCQX: PETV), a veterinary biotech and biomedical device company focused on treating osteoarthritis in dogs and horses, has acquired PiezoBioMembrane (PBM) — a startup built around a biodegradable implant that generates electricity from the everyday force of a joint in motion, and uses that charge to help regrow cartilage from the inside out. The material is the invention of Thanh Nguyen, a professor of mechanical engineering in UConn's College of Engineering, who founded PBM in 2021 to advance new implementation methods for his work with piezoelectric materials — substances that convert mechanical force into electrical energy. These materials are typically ceramics: hard, brittle, and poorly suited for medical use. But Nguyen's lab developed new forms that are so , flexible, and biodegradable, breaking down naturally within the body over time. wound healing, The materials have already shown strong potential across a range of medical applications, including tissue regeneration, implanted force sensors, and targeted drug delivery in tumor treatment. How It Works biodegradable ultrasound for In the case of arthritis, Nguyen explains, the piezoelectric materials function as an off-the-shelf product that can be implanted or injected directly into the ailing joint — with no drugs, chemicals, or cells required. The everyday force exerted on the joint generates a small electrical charge, which helps regrow healthy cartilage, mimicking the body's natural use of electricity to regenerate tissue. "The body can be electrically stimulated to regrow," Nguyen says. PBM's materials "act like a battery — an everlasting battery that works whenever there is a force applied, and vanishes safely inside the body over time." PetVivo's Vision for the Acquisition PetVivo Holdings CEO John Lai expressed enthusiasm for the merger's potential to improve the lives of companion animals globally. "PBM has developed a compelling functional biomaterials platform with the potential to support the development of multiple medical device and therapeutic product lines across both human and animal health markets," Lai said in a press release. "By combining PBM's scientific innovation with PetVivo's product development capabilities, commercialization experience, regulatory expertise, and public company infrastructure, we believe we can accelerate theadvancement of technologies that may serve as the foundation for numerous future products and strategic opportunities." For Nguyen, the deal is a chance to scale technology that could eventually benefit both animals and people. "PetVivo is an animal health company, but they do have a big passion: pushing the technology towards clinical trials for human use," Nguyen says. "That aligned perfectly with my passion for developing technology that has an impact on human life. That is why I am excited about this merger, which facilitates my passion." A Track Record of Innovation Nguyen's research sits at the intersection of medicine, micro/nanotechnology, and biomaterials. His inventions have earned him publications in prominent scientific journals and media coverage from outlets including NPR. Nguyen founded PBM during the COVID-19 pandemic, a er realizing the material he had developed could be used to create an especially effective, biodegradable face mask — one where the mechanical force of breathing generated an electrical charge that provided an extra layer of protection against viruses. PBM is not Nguyen's only venture in the acquisition pipeline. His other startup, Single-Time Microneedles (STM), is also currently undergoing an acquisition process. STM has pioneered stable, efficient vaccine delivery technology in the form of an adhesive patch. shelfNguyen's focus on biodegradable materials has translated into a remarkably diverse range of medical applications. He has received five R01 grants from the National Institutes of Health (NIH) supporting research in cartilage regeneration, bone regeneration, HIV antibody delivery systems, and biodegradable ultrasound technology to boost the effectiveness of chemotherapy for brain cancer. "Whatever we are working on, we want to show that it works very well in vitro and in vivo," Nguyen says. "Then, when we are at the point of commercialization, we set up a startup or license the technology — or maybe team up with an industry partner." Thanh Nguyen is a professor of mechanical engineering in UConn's College of Engineering. (Courtesy of Thanh Nguyen

Octrado introduces its proprietary trading offering: "Your Skill. Our Capital"

Infrastructure, transparent rules and clear legal boundaries positioned as the core of the funded-account model

Could gas prices return to 2022 highs on US-Iran war?

European gas prices have more than doubled owing to the US-Iran war, just as Europe needs to replenish its reserves ahead of winter.

Change text size:

The National Times - US jobs data boosts rate cut hopes but stocks slide