Wall Street ends slightly down after weak labor market data, dovish Fed comments
Job openings indicate labor market easing
Nvidia edges lower after report of DOJ subpoena
Dollar Tree dives after cutting annual forecasts
AMD rises after hiring former Nvidia executive
Adds preliminary closing details
By Chibuike Oguh
NEW YORK Sept 4 (Reuters) -U.S. stocks finished slightly downin choppy trading on Wednesday following labor market data and comments from a Federal Reserve official that bolster the case for an interest rate cut.
Labor Department data showed that U.S. job openings fell to a 3-1/2-year low in July, indicating continued easing of labor market tightness that could strengthen the Fed's hand to begin cutting rates at its next meeting later this month.
"This is always a rocky period in September but the economy is holding up," said Bill Strazzullo, chief markets strategist at Bell Curve Trading in Boston. "The consumer is fine, the labor market is fine. I'm still bullish overall."
Shares of Nvidia NVDA.O, which suffered a massive $279 billion drop in market value on Tuesday, lost ground. The U.S. Department of Justice sent a subpoena to the AI chip firm as it deepens its probe into the company's antitrust practices, according to a report.
Other megacap growth stocks including Apple AAPL.O and Amazon.com AMZN.O slipped. Tesla TSLA.O shares rose.
Raphael Bostic, Atlanta Fed president, said on Wednesday the central bank must not keep interest rates too high much longer or it risks causing too much harm to employment. He added that waiting until inflation falls back to the Fed's 2% goal before cutting rates "would risk labor market disruptions that could inflict unnecessary pain and suffering."
In the previous day's session, all three Wall Street indexes slumped to their biggest one-day loss since early August as investors dumped technology-related stocks in a dour start to September - which is historically the worst month for equities.
"Utility stocks are up today because of weak data in jobs that just bolsters the case that when the Fed meets in about two weeks they are going to cut rates by at least 25 basis points," said Eric Beyrich, co-chief investment officer at Sound Income Strategies.
According to preliminary data, the S&P 500 .SPX lost 10.25 points, or 0.19%, to end at 5,518.68 points, while the Nasdaq Composite .IXIC lost 53.96 points, or 0.31%, to 17,082.34. The Dow Jones Industrial Average .DJI rose 31.44 points, or 0.08%, to 40,968.37.
Advanced Micro Devices AMD.O rose after it named former Nvidia executive Keith Strier as senior vice president of global AI markets.
Zscaler ZS.O fell sharply after the company forecast fiscal 2025 revenue and profit below estimates. Dollar Tree DLTR.O slumped after the discount store operator trimmed its annual sales and profit forecasts.
September is the worst month for S&P 500 on average since 1928 https://tmsnrt.rs/3zea03d
JOLTS https://reut.rs/4cYB3xo
Reporting by Chibuike Oguh in New York; additional reporting by Johann M Cherian, Bansari Mayur Kamdar and Purvi Agarwal in Bengaluru
Editing by Matthew Lewis
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