Strong jobs jar stocks; chips steady the tape

Daily Recap

A hotter-than-expected August payrolls report rekindled odds of a near-term Fed hike and left the S&P 500 and Dow modestly lower into the close, while the Nasdaq held up as semiconductors rallied. Consumer discretionary led decliners, with technology and industrials the only sectors in the green. Gold slipped as the dollar firmed after the data.

Key Headlines & Market Movers

Jobs beat tilts the Fed narrative back toward a hike: Nonfarm payrolls rose by 162,000 in August, nearly triple consensus, keeping unemployment at 4.1% and nudging markets to price a higher chance of a rate increase this month. Average hourly earnings advanced at a measured pace, but the stronger hiring headline was enough to push equities off Thursday’s relief rally highs. The read-through: growth remains sturdy, and the Fed can stay vigilant if inflation progress wobbles.

Chips power resilience as cyclicals lag: Semiconductors outperformed, with major chip ETFs climbing even as broad indexes slipped, helping the Nasdaq cushion the blow. Sector breadth was narrow: technology and industrials eked out gains while consumer discretionary, communication services, and healthcare lagged. Small caps were a touch firmer and QQQ was near flat, reflecting a market leaning on growth leadership to offset cyclical weakness.

Lululemon’s warning dents retail sentiment: Lululemon slumped after cutting revenue and profit guidance, a high‑profile crack in discretionary that added to the sector's underperformance. The drop amplified a rotation away from consumer‑exposed names just as rate expectations moved higher on the jobs print. The takeaway: pockets of earnings risk in retail can still punch through even when the macro looks resilient.

S&P 500 Sector Performance

Into next week’s Fed decision, expect rates‑sensitive swings to remain tight: any fresh inflation or demand signals could nudge policy odds and, with them, leadership. Watch whether chips and mega‑cap tech continue to shoulder the tape, and whether consumer‑facing names can stabilize after today’s stumble.

Disclaimer

Duncan Williams Asset Management is an SEC registered investment adviser. SEC registration does not constitute an endorsement of Duncan Williams Asset Management by the SEC nor does it indicate that Duncan Williams Asset Management has attained a particular level of skill or ability.

This material prepared by Duncan Williams Asset Management is for informational purposes only and is accurate as of the date it was prepared.  It is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy or investment product. Past performance is not indicative of future results. Investing involves risks, including the risk of loss of principal. Before making any investment decision, investors should consult with their financial advisor, consider their individual financial circumstances, and carefully review all relevant information and risk factors. Duncan Williams Asset Management assumes no responsibility for errors or omissions, nor does it accept liability for any loss arising from reliance on this information.

Advisory services are only offered to clients or prospective clients where Duncan Williams Asset Management and its representatives are properly licensed or exempt from licensure. No advice may be rendered by Duncan Williams Asset Management unless a client service agreement is in place.

This material is not intended to serve as personalized tax, legal and/or investment advice since the availability and effectiveness of any strategy is dependent upon your individual facts and circumstances. Duncan Williams Asset Management is not a legal or accounting firm. Please consult with your legal or tax professional regarding your specific tax situation when determining if any of the mentioned strategies are right for you.

‍