U.S. stocks are in meltdown! There’s no escaping the September curse! Where is the bottom?

U.S. stocks closed lower on Friday, with the three major stock indexes all recording large losses this week. The S&P 500 index recorded its worst weekly performance since March 2023.

The reasons for the sharp decline in U.S. stocks on Friday are as follows: As a key indicator for determining whether the Federal Reserve will cut interest rates by 25 or 50 basis points in two weeks, the August non-farm employment report released by the U.S. Department of Labor. The latest data showed that non-farm employment in August rebounded to 142,000 from the previous month, compared with the median analyst estimate of 165,000, and the unemployment rate dropped to 4.2%, in line with expectations. It should be noted that these two data come from two different surveys. The employment number comes from sample surveys of enterprises and government units, and the unemployment rate comes from household surveys.

It is worth noting that the July data was revised down from 114,000 to 89,000, and the June data was revised down from 179,000 to 118,000. The two-month total was revised down by 86,000 new jobs. Canada’s unemployment rate jumped to +6.6%. highest since 2017 (excluding Covid19)

Investors did not see the good news they hoped for, but instead intensified people's concerns about the slowdown in the labor market. Risk aversion continued to rise, and they began to sell riskier assets. U.S. chip stocks and technology stocks led the decline.

The August non-farm payrolls data worried the market that the Federal Reserve's aggressive interest rate policy was causing economic activity to slow down more than previously expected, and the market speculated that the Federal Reserve would cut interest rates more significantly at its next meeting.

U.S. Treasuries rose and yields fell after a mixed U.S. jobs report reinforced traders' bets that the Federal Reserve could cut interest rates this month with a sizable margin.

After the Nasdaq fell below the support of 17,000 points on Friday, there is no clear position downward, and it will probably stabilize near 16,500 points.

Therefore, next week will continue to be dominated by shocks. Selling high and buying low is the best strategy.