• Stocks headed lower over economic concerns. U.S. stock indexes posted some of the steepest weekly declines in over a year. Ever major index closed in the red on Friday. Technology stocks were hit particularly hard amid fresh concerns about the short-term profit potential from artificial intelligence. The Nasdaq is in correction territory but remains above its low in early August.
• Global markets and commodities headed down while the U.S. dollar went higher. Asia and Europe markets closed lower. The U.S. dollar advanced versus major currencies. The price of U.S. crude oil fell nearly 8% for the week to the lowest level in about 14 months. and gold also traded lower.
• Mixed job data. Wednesday's JOLTS data showed July's job openings fell to the lowest level since January 2021. Thursday's ADP data showed the lowest monthly growth of private jobs, also since 2021. Friday's report showed that employers added an estimated 142,000 jobs last month, marking stronger growth than July’s worrisome low number (which was revised down from 114,000 to 89,000) according to data released by the Bureau of Labor Statistics. The unemployment rate dropped to 4.2% from 4.3%.
• Yields of government bonds went lower. Yields of U.S. government bonds fell amid expectations of an interest-rate cut by the U.S. Federal Reserve. The Fed's two-day meeting concludes on September 18. The yield of the 10-year U.S. Treasury bond ended the week at 3.72%—the lowest since June 2023 and down from 3.92% at the end of the previous week.
• Expectations of short-term U.S. market volatility went higher. Expectations jumped about 49% for the week. Although the Cboe Volatility Index rose on Friday to a closing level of around 22, that reading was still well below a recent peak of nearly 39 reached on August 5 during a surge in volatility that subsided after a few days.
• Q2 earnings in motion. Utilities posted the strongest earnings growth at the sector level in the recently completed earnings season with a 21% increase relative to the previous year’s second quarter, according to FactSet. Across all S&P 500 sectors, earnings grew by an average of 11.3%. This was the strongest result since the fourth quarter of 2021. 

• Nvidia Corp. (NVDA)
• Polestar Automotive Holding UK PLC
• Ambev (ABEV)
• Warner Brothers, Discovery Inc. (WBD)
• SNAP Inc. (SNAP)

Biggest Gainers

• Samsara Inc. (IOT) +13.60%
• GameStop Corp. (GME) +6.83
• Lotus Technology (LOT) +5.93%
• Smartsheet, Inc. (SMAR) +5.92%
• Stericycle, Inc. (SRCL) +4.58%

Biggest Losers

• Braze, Inc. (BRZE) -19.40%
• Legend Biotech, Corp. (LEGN) -10.66%
• Celestica Inc. (CLS) - 10.61%
• e.l.f. Beauty, Inc. (ELF) - 9.65%
• Broadcom (AVGO) - 10.36%

Weekly Notables

Palantir and Dell Shares Jump on News About Joining S&P 500

Dell and Palantir both jumped about 7% in extended trading Friday after S&P Global announced that the companies would join the S&P 500 index.

Palantir will take the place of American Airlines, and Dell is replacing Etsy, according to a statement. For Dell, the announcement marks a return to the benchmark index. The computer and server maker was a constituent from 1996 to 2013. It went public again in 2018.

Stellantis Recalls Over 1.2M Ram 1500 Pickup Trucks

The National Highway Traffic Safety Administration (NHTSA) has issued a recall notification for 1,227,808 of the 2019, and 2021-2024 Ram 1500 vehicles in the U.S. from Chrysler's parent company Stellantis for a software malfunction. According to the recall report, the software malfunction can cause the anti-lock brake system (ABS) control module to disable the electronic stability control system. If a driver operates their vehicle with a disabled electronic stability control system, it can increase the risk of a crash, the report said. "FCA is unaware of any related injuries or accidents," Frank Matyok, a spokesperson for Stellantis said in a statement to USA TODAY. "

The Week Ahead

• Potential market moving catalysts this week include: Small Business Optimism Index will be released Tuesday from the National Federation of Independent Business. A Consumer Price Index report set to be released on Wednesday will provide one of the last data points for the U.S. Federal Reserve. The most recent CPI report released in August showed an annual inflation rate of 2.9%, the first reading below 3.0% since early 2021. On Friday University of Michigan Index of Consumer Sentiment will have its preliminary result.
• ECB poised to cut rates. The European Central Bank will probably cut interest rates on Thursday in a prelude to a US move the following week.
• Earnings on deck this week include: Oracle (ORCL) Rubrik, (RBRK), GameStop (GME), Dave & Buster's, Petco Health & Wellness (WOOF), and Kroger (KR).

Earnings Spotlight: Dave & Buster's Entertainment

Dave & Buster's Entertainment will disclose its second-quarter results after Tuesday's close.  Analysts, on average, expect the entertainment and dining chainto report earnings of 84 cents per share, up 40% on a year-over-year (YoY) basis. Revenue is forecast to arrive at $560.7 million (+3.4% YoY). According to the analyst, expectations are "seemingly very low" for PLAY this time around "and maybe the quarter acts as a 'clearing event' for the shares to find some near-term support."