SanDisk Jumps 10%, Lululemon Crashes 17%: Stock Market Today
Key takeaways
- Strong August jobs data pushed the Fed rate‑hike probability up, sparking a rotation that lifted semiconductor and storage names while dragging software and retail stocks.
- 162,000 jobs added in August
- 52% probability of a 25‑bp Fed rate hike this month
- S&P 500 at 7,725.16
What happened
U.S. equities fell after an August payroll report that added 162,000 jobs, far above the 55,000 consensus, prompting traders to price in a 52% chance of a 25‑basis‑point Fed rate hike this month. The S&P 500 slipped 0.3% to 7,725.16, the Dow dropped 0.5% to 53,436.22, and the Nasdaq 100 fell 0.3% to 29,408.11. Semiconductor and storage names surged, with SanDisk up 10.3% to $1,714.87 and Astera Labs up 12% to $316.86, while software and discretionary retailers collapsed, notably Lululemon…
Why it matters
The payroll data signals a stronger labor market than expected, tightening the case for higher interest rates and weighing on growth‑sensitive sectors. The sharp rotation from memory and semiconductor winners to software and retail losers highlights sector‑specific risk appetite shifts and may foreshadow broader…
Short-term and longer-term
Short-term. Short‑term traders should watch the Fed’s rate‑hike probability and the continued volatility in software and retail names.
Longer-term. Over the next few months, investors should assess how the higher rate environment will impact capital‑intensive sectors like semiconductors versus growth‑heavy software.