01:20 PM EDT, 09/06/2024 (MT Newswires) -- US equity indexes fell after midday on Friday as a smaller-than-anticipated increase in nonfarm payrolls coupled with downward revisions to the readings for the previous two months pushed government bond yields lower.

The Nasdaq Composite dived 2.5% to 16,702.4, with the S&P 500 index sliding 1.7% to 5,412.9 and the Dow Jones Industrial Average 0.9% lower at 40,379.9. All sectors fell intraday, led by technology, communication services, and consumer discretionary.

In economic news, nonfarm payrolls climbed by 142,000 in August, the Bureau of Labor Statistics reported. The consensus was for a 165,000 increase, as per a survey compiled by Bloomberg. July payrolls saw a downward revision to an 89,000 gain and June payrolls were also lowered to a 118,000 increase, resulting in a net downward revision of 86,000 jobs.

The August unemployment rate slipped to 4.2% from July's 4.3%, as expected.

"Determining the pace of rate cuts and ultimately the total reduction in the policy rate are decisions that lie in the future," Federal Reserve Governor Christopher Waller said in a speech at the University of Notre Dame Friday. "As of today, I believe it is important to start the rate-cutting process at our next meeting. If subsequent data show a significant deterioration in the labor market, the FOMC can act quickly and forcefully to adjust monetary policy."

The next FOMC policy decision is due Sept. 18.

The CBOE's Volatility Index (VIX), also known as the fear index, soared more than 18% to 23.52.

Most Treasury yields fell, with the 10-year down less than one basis point to 3.73% and the two-year 5.8 basis points lower at 3.69%.

West Texas Intermediate crude oil sank 2.3% to $67.53 a barrel.

In company news, Broadcom ( AVGO ) shares sank 9% intraday, the worst performer in the S&P 500 and the Nasdaq, after the company late Thursday guided for fiscal Q4 revenue of about $14 billion, narrowly missing the $14.04 billion forecast from analysts polled by Capital IQ.

JPMorgan downgraded Super Micro Computer ( SMCI ) to neutral from an overweight rating. Shares of Super Micro were trading down 6.2% intraday, the second steepest decline in the two indexes.

Intel ( INTC ) is considering selling its 88% stake in automated driving systems provider Mobileye Global ( MBLY ) , Bloomberg reported Thursday, citing people familiar with the matter. Shares of the chipmaker dropped 2.5% intraday, among the biggest laggards on the Dow.

Gold fell 1.1% to $2,516.10 an ounce, and silver slumped 3.6% to $28.05.