CLOSING BELL
Robinhood, APP Get The Nod

The market fell Friday after a weaker-than-expected jobs report. Labor Day seemed a harbinger of bad labor market news. The unemployment rate rose on schedule, but the jobs added were way lower, and June’s additions were revised to negative. It’s the first monthly job cut since 2020. Economists went full rate cut frenzy, with a completely priced-in September 17th cut. Barclays now predicts three cuts this year, in Oct and Dec. Chicago Fed Prez Goolsbee said it’s easier to focus on bad labor as a reason to cut, but also warned inflation was rising too.

Still, gold and bitcoin prices flew, and 30-year mortgage rates saw the biggest one-day drop in a year. Tech fell after warnings from the president that semiconductor tariffs were coming, but Broadcom’s healthy earnings held up the Nasdaq 100. 👀

Today’s story: New additions to the S&P 500 climb, banks and brokers fall on jobs data, and more. 📰

5 of 11 sectors closed green, with real estate $XLRE ( ▼ 1.02% ) leading and energy $XLE ( ▲ 1.3% ) lagging.

 $SPY ( ▼ 0.32% )  $QQQ ( ▼ 0.35% )  $IWM ( ▼ 0.92% )  $DIA ( ▼ 0.4% ) 

MACRO NEWS
Robinhood And AppLovin Get The Nod

The big news after the bell on Friday was the who's who of stocks joining the S&P 500, in a quarterly rebalancing.

$HOOD ( ▲ 0.48% ) Robinhood, $APP ( ▼ 1.42% ) AppLovin, and $EMKR ( ▲ 0.81% ) were on the list, replacing low market cap stocks MarketAxes, Enphase, and Ceaser’s Entertainment. It has been a long time coming for Robinhood and AppLovin; investors have felt spurned in multiple rebalancing events this year. According to MarketWatch, the index includes the largest companies in the U.S., over $22.7B in market cap, and a float of $10.25B.

HOOD has met those requirements, as do fresher stocks like $RDDT ( ▼ 0.74% ) Reddit, but the index also selects for "financial viability." Companies have to show non-adjusted profitability for four quarters.

All three stocks were climbing on the news, as the market awaits fund managers to buy up shares to reflect the additions to the list.

SPONSORED
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Pacaso brings co-ownership to the $1.3T vacation home market, earning $110M+ in gross profit to date. No wonder the same VCs that backed Uber, Venmo, and eBay already invested in Pacaso.

Now, after adding 10 new international destinations, Pacaso is hitting their stride. They even reserved the Nasdaq ticker PCSO.

And unlike his previous stops, you can invest in Pacaso as a private company. But you’ll have to hurry. Invest in Pacaso before 9/18.

This is a paid advertisement for Pacaso’s Regulation A offering. Please read the offering circular at invest.pacaso.com.

*3rd Party Ad. Not an offer or recommendation by Stocktwits. See disclosure here.

LABOR
Slowing Jobs Market Means

One segment of the S&P 500 really hated the bad jobs numbers: banks and brokers. When the market is at all-time highs, what falls can define it.

Besides $LULU ( ▲ 3.4% ) falling on its Thursday guidance cut, $KVUE ( ▼ 2.2% ) dropping on a rumor Kennedy was going to cite Tylenol as a prenatal Autism risk, and $AMD ( ▼ 0.01% ) sagging on semi tariffs, $IBKR ( ▼ 1.57% ) Interactive Brokers and Charles Schwab were leading the downtrend.

Real estate was happy, but fear over an actual recession does not tend to make stocks climb. Economists were hoping for 75k additions, not 22k, and not expecting the first negative month since Covid.

Wealth management stocks and investment banks like $MS ( ▼ 1.79% ) were falling, and consumer banks like $WFC ( ▼ 0.31% ) were down. The fear is a softer economy and lower interest rates could hurt banks. Barron’s reported a dip in the demand for loans, and higher defaults would hurt the bottom line. Giants like Schwab have performed great during tariff-caused stock volatility this year, but their valuations come down to bringing new money in the door.

Finra reported that Q2 margin debt exceeded $1 trillion as traders worldwide flocked to the stock market to trade.

White House Advisor Howard Lutnick said BLS data will improve after Trump fired its chief, about an hour before the data came in worse than when the last BLS head was still in the seat. Kevin Hassett called the August jobs data disappointing and expects better updates in the future. President Trump played his part, calling out 'too late’ Fed Chair Jerome Powell to cut rates. Friday’s CME FedWatch puts the chances of a September cut at 100%.

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POPS & DROPS
Top Stocktwits News Stories 🗞️ 

•  Kenvue sank 9% after HHS autism-Tylenol report leak.

• Roblox launched short-form “Moments” for gameplay clips.

• ConocoPhillips CEO blamed M&A the reason for 25% job cuts.

• Mortgage rates plunged to 6.29% after weak jobs data.

• Qualcomm CEO said Intel’s chips aren’t efficient enough yet.

• Bessent warned Fed policy threatens its independence.

• Bitcoin rose above $113K after weak jobs data.

• Tesla board proposed a $1T Musk pay deal, backed by Dan Ives.

• US Jobs Report showed just 22,000 payroll gains in August.

Don’t miss a story! Follow @StocktwitsNews for a live feed in real time. ✍️ 

Links That Don’t Suck 🌐

📺️  'One and done' dose of LSD keeps anxiety at bay

👀 Anthropic agrees to pay $1.5 billion to settle author class action

😨 Wall Street is falling in love with the corporate breakup. Here's why.

🚘️ Hundreds of South Korean workers detained in Georgia battery-plant raid

🎩  Trump warns ‘fairly substantial’ chip tariffs are coming; signals Apple, others will be safe

🏠️ Google leads monster week for tech, pushing megacaps to combined $21 trillion in market cap

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