Amazon.com Inc ( AMZN ) shares are trading lower by 2.6% to $173.24 at last check on Friday.

The dip occurred after a U.S. jobs report revealed that the U.S. economy added 142,000 nonfarm payrolls in August. That’s below the expected 160,000, but improved from July’s revised 89,000.

Despite weaker job growth, the unemployment rate dropped to 4.2%, and wage growth showed stronger-than-expected gains.

Why The Data Matters To Amazon: Friday’s report shows that average hourly earnings grew by 0.7% month-over-month, significantly above expectations.

Wage growth can lead to increased labor costs for companies like Amazon ( AMZN ), which relies on a vast workforce. If Amazon’s labor costs rise, this could squeeze its profit margins, especially given the company’s scale.

Read Also: Amazon ( AMZN ) Analyst Says Company’s ‘Dominant Competitive Position’ In E-Commerce, AWS ‘Provides A Lot To Be Bullish About’

Before the report, there was a 43% chance of a 50-basis-point rate cut by the Federal Reserve, indicating market expectations of looser monetary policy to support economic growth. However, the better-than-expected jobs data, may reduce the likelihood of significant interest rate cuts.

Higher interest rates increase the cost of borrowing, which can negatively impact growth-oriented companies like Amazon ( AMZN ), particularly in sectors that are sensitive to consumer spending and business investment.

While the jobs report tempers recession fears, it signals that the economy is in a delicate position. Investors might be wary of how Amazon’s performance could be impacted by a slowing labor market and its potential knock-on effects on consumer demand, especially if wage growth doesn’t keep pace with inflation in the long run.

How To Buy AMZN Stock

Besides going to a brokerage platform to purchase a share, or fractional share, of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Amazon.com’s case, it is in the Consumer Discretionary sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, Amazon ( AMZN ) has a 52-week high of $201.20 and a 52-week low of $118.35.

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