Broadcom sales outlook disappoints investors despite AI upgrade

The S&P 500 posted its first three-day losing streak in a month, even as investors bought Big Tech stocks ahead of a key jobs report on Friday.

The S&P 500 fell 0.3%. However, the Nasdaq Composite ended 0.3 percent higher as every Magnificent Seven group except Microsoft advanced, marking the first time since June that the two indexes finished in opposite directions. The small-cap-focused Russell 2000 fell 0.3 percent.

Investors are gearing up for the release of non-farm payrolls data for August on Friday. Many recent economic data releases have signaled a weakening of the labor market, raising concerns about a potential US recession.

“The labor market is still, in our view, pretty solid, but if we get a terrible number, that would be a disappointment and probably lead to a lot of hand-wringing,” said Jack Ablin, chief investment officer at Cresset Capital. .