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US jobs growth misses expectations in August

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Broadcom ( AVGO ) tumbles after downbeat Q4 revenue forecast

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Mobileye falls after report Intel exploring stake sale

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Indexes: Dow off 0.07%, S&P 500 down 0.54%, Nasdaq down

0.99%

(Updated at 10:23 a.m. ET/1423 GMT)

By Johann M Cherian and Purvi Agarwal

Sept 6 (Reuters) - Wall Street's main indexes fell on

Friday after a crucial jobs report did little to clear the

uncertainty around the magnitude of the Federal Reserve's

interest rate cut that is expected at the central bank's meeting

later this month.

A Labor Department report showed U.S. employment increased

less than expected in August, but a drop in the jobless rate to

4.2% suggested an orderly labor market slowdown continued.

Traders' bets for a 25-basis point rate cut in September

stood at 53%, according to the CME Group's FedWatch Tool. Bets

for a 50-bps reduction in rates were at 47%, down from a brief

rise to 51% after the data.

Rate-sensitive growth stocks were mixed. Apple ( AAPL ) rose

1%, while Tesla fell 2.9% and Nvidia ( NVDA ) lost

1.5%.

"The market is really struggling with this one ... it's in

the middle of what could be used as a justification for either a

25- or 50-bps rate cut," Gennadiy Goldberg, head of U.S. rates

strategy at TD Securities, said.

Federal Reserve Bank of New York President John Williams

said a better balanced economy has opened the door to cutting

rates, with the full course of action to be determined by how

the economy performs.

The labor market has come under scrutiny after an unexpected

rise in the jobless rate sparked recession fears nearly a month

ago and had sent the tech-heavy Nasdaq down more than 10% into

correction territory and led to a selloff in global markets.

At 10:23 a.m. the Dow Jones Industrial Average fell

27.15 points, or 0.07%, to 40,728.60, the S&P 500 lost

29.02 points, or 0.54%, to 5,473.70 and the Nasdaq Composite

lost 171.46 points, or 0.99%, to 16,956.20.

Most of the S&P 500 sectors turned lower, led by a 1.6% drop

in tech stocks.

Wall Street's three main indexes were on track for a weekly

loss. The benchmark S&P 500 was on course for a weekly drop of

more than 2%, its steepest decline in nearly five months, led by

a more than 5% fall in technology stocks.

September has been historically weak for U.S. equities, with

the S&P 500 down about 1.2% for the month on average since 1928.

Broadcom ( AVGO ) slid 9.3% after the chipmaker forecast

fourth-quarter revenue slightly below estimates, hurt by

sluggish spending in its broadband segment.

Other chip stocks such as Marvell Technology ( MRVL )

dropped 3% and Advanced Micro Devices ( AMD ) shed 1.5%, sending

the Philadelphia SE Semiconductor index down nearly 2%.

The semiconductor index is set for its biggest weekly drop

in more than a month.

Super Micro Computer ( SMCI ) dropped 4.5% after brokerage

J.P.Morgan downgraded the AI server maker's shares to "neutral"

from "overweight".

Declining issues outnumbered advancers for a 1.15-to-1 ratio

on the NYSE and a 1.68-to-1 ratio on the Nasdaq.

The S&P 500 posted 14 new 52-week highs and three new lows,

while the Nasdaq Composite recorded 19 new highs and 81 new

lows.