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Indexes up: Dow 0.16%, S&P 500 0.45%, Nasdaq 0.71%

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August nonfarm payrolls below expectations

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Broadcom ( AVGO ) up following strong AI revenue growth forecast

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Lululemon plunges after profit forecast cut

(Updates after markets open)

By Purvi Agarwal and Ragini Mathur

Sept 5 (Reuters) -

Wall Street's main indexes hit intraday record highs on

Friday after a weaker-than-expected August jobs report boosted

bets on imminent rate cuts from the U.S. central bank, while

chip major Broadcom ( AVGO ) surged on strong quarterly earnings.

Broadcom ( AVGO ) soared 13% to a record high after the chip

designer forecast fourth-quarter revenue above estimates and

expected AI revenue growth to "improve significantly" in

fiscal-year 2026.

U.S. job growth weakened sharply in August and the

unemployment rate rose to 4.3%, confirming that labor market

conditions were softening and strengthening the case for an

interest-rate cut from the Federal Reserve this month.

Traders of futures tied to the Fed's policy rate added to

bets that it will cut interest rates in quick succession

starting this month.

CME's FedWatch Tool showed markets are now pricing in a 16%

chance of a jumbo 50-basis-point cut in September.

"It shows that the labor market is stalling to the point

where we could experience negative job growth in the months

ahead, and this is due to uncertainties over tariffs," said

Peter Cardillo, chief market economist at Spartan Capital

Securities.

"This perhaps raises speculation that the Fed could cut

(borrowing costs) by 50 basis points in September."

At 09:43 a.m. ET, the Dow Jones Industrial Average

rose 73.08 points, or 0.16%, to 45,694.37, the S&P 500

gained 29.47 points, or 0.45%, to 6,531.55, and the

Nasdaq Composite added 151.85 points, or 0.71%, to

21,861.39.

Rising rate-cut bets helped drive the real estate sector

up 1.2% to lead sectoral gains, while the Philadelphia

Housing Index climbed 2.2% to an eight-month high.

Broadcom's ( AVGO ) results boosted tech stocks, with the

Philadelphia SE Semiconductor index adding 2.1%.

Investors, who were unimpressed by Nvidia's ( NVDA )

quarterly results last week and concerned after the lofty

valuations of AI-related firms briefly paused Wall Street's

rally in August, were relieved after Broadcom's ( AVGO ) results.

On the other hand, Lululemon Athletica ( LULU ) plunged

17.5% to a more than five-year low after the yogawear-maker

slashed its annual profit forecast the second time in a row,

dragging larger rival Nike ( NKE ) down 1% and limiting gains in

the consumer discretionary sector.

The S&P 500 closed at a record high on Thursday, with the

Nasdaq and the Dow also finishing higher after a slew of

economic indicators kept rate-cut hopes intact.

All three indexes were on track for gains in the first week

of September. The S&P 500 has lost 1.5% on average in September

since 2000, according to LSEG data, making it the worst month

historically for U.S. equities.

In other moves, Tesla added to gains and was last

up 4.5% after the EV-maker proposed an about $1-trillion

compensation package for top boss Elon Musk, subject to meeting

lofty performance targets.

Samsara advanced 15% after the software firm beat

second-quarter revenue expectations.

Advancing issues outnumbered decliners by a 5.06-to-1

ratio on the NYSE and by a 3.14-to-1 ratio on the Nasdaq.

The S&P 500 posted 24 new 52-week highs and two new

lows, while the Nasdaq Composite recorded 93 new highs and 40

new lows.