02:10 PM EDT, 09/06/2024 (MT Newswires) -- US benchmark equity indexes were lower intraday after official data showed the economy added fewer jobs than estimated in August.

The Nasdaq Composite was down 2.1% at 16,767.4 after midday Friday, while the S&P 500 fell 1.4% to 5,425.9. The Dow Jones Industrial Average lost 0.7% to 40,456.8. All sectors were in the red, led by communication services and technology.

In economic news, total US nonfarm payrolls rose by 142,000 last month, the Bureau of Labor Statistics reported. The consensus was for a 165,000 increase, according to a survey compiled by Bloomberg. The unemployment rate ticked down to 4.2% from July's 4.3%, in line with analysts' estimate for August.

"Clearly, the labor market has cooled over the past year, but we feel there isn't enough evidence to suggest that the recent softening is the start of a more serious deterioration in underlying fundamentals," TD Economics said in a note to clients. "Absent a change to this view, we expect three quarter-point rate cuts from the (Federal Reserve) by year-end."

The odds of a 25-basis-point interest rate cut on Sept. 18 jumped to 73% Friday from 60% Thursday, while the probability of a more aggressive 50-basis-point reduction fell to 27% from 40%, according to the CME FedWatch tool.

The US two-year yield declined 7.9 basis points to 3.67% intraday, while the 10-year rate dropped 2.5 basis points to 3.71%.

It is now "appropriate" for the central bank's Federal Open Market Committee to start easing its monetary policy, New York Fed President John Williams said. Separately, Fed Governor Christopher Waller said it is "important" to begin the easing process later this month.

"It is likely that a series of reductions will be appropriate," Waller said, adding that deciding on the pace of rate cuts will be challenging. "I do not believe the economy is in a recession or necessarily headed for one soon."

West Texas Intermediate crude oil fell 1.8% to $67.90 a barrel intraday. Prices were on course for a weekly loss "despite a delay to (the Organization of the Petroleum Exporting Countries and its allies') supply hike," D.A. Davidson said in a note to clients.

In company news, Broadcom ( AVGO ) shares tumbled 8.9%, the worst performer on the S&P 500 and the Nasdaq. Late Thursday, the chipmaker outlined a fiscal fourth-quarter revenue outlook that missed Wall Street's views. It logged stronger-than-expected third-quarter results, buoyed by demand for artificial intelligence semiconductor solutions and its acquisition of VMware.

Electric vehicle maker Tesla (TSLA) saw the second-steepest decline on the two indexes, down 6.6%.

BRP (DOOO) slashed its full-year outlook after its fiscal second-quarter results dropped year over year, impacted by demand headwinds. Shares of the maker of snowmobiles and all-terrain vehicles were down 3% intraday.

Gold was down 0.7% at $2,524.70 per troy ounce, while silver tumbled 3% to $28.23 per ounce.