Executive Mosaic’s GovCon Index had a forgettable ending to the holiday-shortened week, falling 1.74% to $5,312.73. Wall Street’s major stock indexes flashed red due to a weakening job market. The Dow Jones Industrial Average (-1.01%), S&P 500 (-1.73%) and Nasdaq Composite (-2.55%) registered their worst starts to September in years, according to published reports.
The tech sector declined steeply, as 77% of Nasdaq components fell in deep red. Semiconductor maker Broadcom (Nasdaq: AVGO) tumbled 10.36% after reporting a $1.88 billion net loss in Q3 fiscal 2024. Tesla (Nasdaq: TSLA) lost steam, sinking 8.45% due to potential regulatory obstacles to the approval of its full self-driving (FSD) cars. AI king Nvidia (Nasdaq: NVDA) lost 4.1%.
GovCondex Index stocks were clobbered, although one constituent survived Friday’s selloff. Palantir Technologies (NYSE: PLTR) was the lone gainer, rising 0.56% to $30.33 at the close. KBR (NYSE: KBR) and Fluor Corporation (NYSE: FLR) were the worst performers, with -6.57% and -4.82%, respectively, among 29 decliners.
Palantir Technologies and tech peer Dell Technologies (NYSE: DELL) have been added to the S&P 500 following the index’s latest quarterly reshuffle. The former will replace American Airlines (Nasdaq: AAL), while the latter takes the place of Etsy (Nasdaq: ETSY) starting Sept. 23.
Northup Grumman (NYSE: NOC) secured an $83.2 million modification with the U.S. Army to a contract for additional and continued lifecycle contractor services. The estimated completion date is on Aug. 31, 2025.
Also, on Friday, the Bureau of Labor Statistics reported that the US economy added 142,000 jobs in August. The figure was below the forecasts of 160,000 and lower than the 202,000 average monthly gain over the prior 12 months. However, the unemployment rate decreased to 4.2% from 4.3% in July.
On the possible rate action by the central bank soon, New York Fed President John Williams said it is now time to cut interest rates because inflation is coming down towards the 2% target. Fed Governor Christopher Waller backed lowering the policy rate given the achievement and continuing progress on inflation plus moderation in the labor market.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 5,312.73 | -92.39 | -1.74% |
| Dow Jones Industrial Average | 40,345.41 | -410.34 | -1.01% |
| S&P 500 | 5,408.42 | -94.99 | -1.73% |
| NASDAQ | 16,690.83 | -436.83 | -2.55% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| PLTR | 30.33 | 0.17 | 0.56% |
| GIB | 111.98 | -0.33 | -0.29% |
| ACN | 339.84 | -1.09 | -0.32% |
| LMT | 566.63 | -1.96 | -0.34% |
| HII | 269.21 | -1.72 | -0.63% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| PLTR | 30.33 | 0.17 | 0.56% |
| GIB | 111.98 | -0.33 | -0.29% |
| BAESY | 68.03 | -0.64 | -0.93% |
| KTOS | 21.09 | -0.75 | -3.43% |
| CG | 37.23 | -0.84 | -2.21% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| KBR | 62.04 | -4.36 | -6.57% |
| FLR | 44.04 | -2.23 | -4.82% |
| KTOS | 21.09 | -0.75 | -3.43% |
| TTEK | 225.23 | -8.00 | -3.43% |
| MRCY | 36.4 | -1.18 | -3.14% |
