U.S. stocks briefly hit record highs on Friday before reversing course to trade lower, after data showing U.S. job growth cooled in August led investors to double down on bets that the Federal Reserve might cut interest rates later this month, maybe by as much as 50 basis points.

Market Snapshot

The S&P 500 Index hit a record high of 6,532.65 points in early trade before pulling back to be down 0.32%. The Dow Jones Industrial Average also hit a record high in the first few minutes of the trading day before retreating 0.5%, while the Nasdaq Composite Index finished unchanged.

Market Movers

Broadcom - Broadcom rose 9.4% after posting fiscal third-quarter adjusted earnings and revenue that beat analysts’ forecasts. Artificial-intelligence revenue jumped 63% in the quarter to $5.2 billion. The semiconductor and software company said it expects total fourth-quarter revenue of about $17.4 billion, higher than consensus of $17.02 billion, and anticipates growth in AI semiconductor revenue to “accelerate to $6.2 billion” in the fourth quarter, marking 11 consecutive quarters of growth.

CEO Hock Tan revealed Broadcom had secured $10 billion in AI orders from a new customer, which he believes will “significantly” improve the AI revenue outlook for fiscal 2026. Multiple Wall Street analysts said they believe Broadcom’s new customer is ChatGPT-developer OpenAI.

Tesla - Tesla was up 3.6% after the electric-vehicle maker’s board asked investors toapprove a new pay package for CEO Elon Muskthat could be worth as much as $1 trillion over the next 10 years.

Nvidia - Shares of Nvidia, the leading maker of AI chips, closed down 2.7% after Broadcom reported earnings. The stock ended Thursday’s session with a gain of 0.6% and snapped a five-session losing streak. Nvidia has gained 24% this year.

Lululemon Athletica - Fiscal second-quarter earnings at Lululemon Athletica topped analysts’ expectations, but shares sank 18.6% after the athleisure company cut its fiscal-year guidancefor a second time. The retailer lowered its profit guidance to reflect both a slowdown in sales and bigger-than-expected tariff impacts. As for revenue, Lululemon now expects fiscal-year revenue to range between $10.85 billion and $11 billion, down from previous guidance of $11.15 billion to $11.30 billion. The new range’s midpoint of $10.93 billion was below consensus of $11.2 billion.

Samsara - Samsara, the “internet of things” company, reported second-quarter earnings and revenue, up 30% from a year earlier, that beat Wall Street estimates, and its revenue guidance for the current third quarter slightly topped expectations. Shares rose 17.4%.

Guidewire - Guidewire Software rallied 20.2% after the insurance-software provider said it sees fiscal 2026 revenue of $1.39 billion to $1.41 billion, higher than Wall Street forecasts of just below $1.36 billion. Guidewire reported fiscal fourth-quarter adjusted earnings of 84 cents a share on revenue of $356.6 million, topping expectations.

Kenvue - Tylenol maker Kenvue slumped 9.4% after the Wall Street Journal reported that Health Secretary Robert F. Kennedy Jr. plans to draw a link between autism and use of the pain medication in pregnant women in a report later this month. “We have continuously evaluated the science and continue to believe there is no causal link between acetaminophen use during pregnancy and autism,” Kenvue said in a statement.

Braze - Braze jumped 13.6%. The customer-engagement platform posted better-than-expected earnings and revenue in the second quarter and hiked its fiscal-year guidance.

Docusign - Docusign gained 4.8%. The e-signature platform reported second-quarter earnings, revenue, and billings that were better than expected, and raised its fiscal-year outlook.

UiPath - Automation-software company UiPath was up 5.9% after posting better-than expected second-quarter adjusted earnings and boosting its fiscal-year revenue outlook, citing momentum in its agentic AI offerings. The company expects revenue between $390 million and $395 million in the current third quarter.

ServiceTitan - Software company ServiceTitan reported second-quarter earnings and revenue that easily topped analysts’ estimates and issued a fiscal-year revenue forecast that also was better than expected. Shares climbed 13.6%.

Copart - Copart, the online auto auction platform, posted fiscal fourth-quarter earnings that rose from a year earlier as revenue gained 5.2% to $1.13 billion, but missed forecasts of $1.14 billion. The stock fell 2.8%.

Phreesia - Phreesia fell 9.9%. The company, which provides digital solutions for the healthcare industry, posted second-quarter earnings and revenue that beat Wall Street estimates. Phreesia also announced that it reached an agreement to acquire healthcare financing company AccessOne for $160 million. Phreesia was named a Barron’s stock pick in early August.

Market News

US Unemployment Rate near 4-Year High as Labor Market Hits Stall Speed

U.S. job growth weakened sharply in August and the unemployment rate increased to nearly a four-year high of 4.3%, confirming that labor market conditions were softening and sealing the case for a Federal Reserve interest rate cut later this month.

The Labor Department's closely watched employment report on Friday also showed the economy lost jobs in June for the first time in four and a half years, fanning fears of economic stagnation. Job growth has slowed since April, with economists blaming President Donald Trump's policies, mainly tariffs on imports, an immigration crackdown and mass firings of public workers.

Nonfarm payrolls increased by only 22,000 jobs last month after rising by an upwardly revised 79,000 in July, the Labor Department's Bureau of Labor Statistics (BLS) said. Economists polled by Reuters had forecast payrolls would rise by 75,000 jobs after a previously reported gain of 73,000 in July.

Inside Tesla's $1 Trillion Pay Proposal for CEO Elon Musk

Tesla outlined a $1 trillion compensation plan for CEO Elon Musk on Friday, which pays out if he is able to grow the EV company's market capitalization from about $1.1 trillion to $8.5 trillion and to hit several operational targets.

The award would vest in tranches and the last two quotas require a board‑approved CEO succession plan.

Tesla plans to grant Musk up to 423.7 million performance-based restricted shares — about 12% of the company's current shares — split into 12 equal tranches.