Wall St slides to over 3-week low after mixed payrolls data
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Fed policymakers say they are ready to cut interest rates
Broadcom tumbles after downbeat Q4 revenue forecast
Chip index set for biggest weekly drop since March 2020
Indexes: Dow off 0.81%, S&P 500 down 1.47%, Nasdaq down 2.30%
Updated at 11:44 a.m. ET/1544 GMT
By Johann M Cherian and Purvi Agarwal
Sept 6 (Reuters) -Wall Street's main indexes fell to their lowest in over three weeks on Friday after a crucial jobs report did little to clear the uncertainty around the magnitude of the Federal Reserve's interest rate cut expected at itsmeeting later this month.
A Labor Department report showed U.S. employment increased less than expected in August, but a drop in the jobless rate to 4.2% suggested an orderly labor market slowdown continued.
Traders' bets for a 25-basis point rate cut in September stood at 73%, according to the CME Group's FedWatch Tool, while thosefor a 50-bps reduction in rates were at 27%, down from a brief rise to 51% after the data.
Rate-sensitive growth stocks such asAlphabet <GOOGL.O> and TeslaTSLA.O fell 2.8% and 5.4%, respectively, while Nvidia NVDA.O lost 4.4%, nearing the level of $100 last seen in early August.
"There's uncertainty about what the Fed is going to do," said Melissa Brown, managing director of investment decision research at SimCorp.
"We certainly would like to see rates come down, but on the other hand could an aggressive move suggest that they see something that makes them think the economy is worse off than we thought?"
Meanwhile, some policymakers said they are ready to lower interest rates at the Fed's meeting in two weeks, with one of them saying hecould support a bigger cut in borrowing costs, should the cooling labor market need support.
The labor market has come under scrutiny after an unexpected rise in the jobless rate sparked recession fears nearly a month ago and had sent the tech-heavy Nasdaq down more than 10% into correction territory and led to a selloff in global markets.
At 11:44 a.m. ET, the Dow Jones Industrial Average .DJI fell 329.57 points, or 0.81%, to 40,426.18, the S&P 500 .SPX lost 81.01 points, or 1.47%, to 5,422.40 and the Nasdaq Composite .IXIC lost 393.51 points, or 2.30%, to 16,734.15.
All major sectors on the S&P 500 were trending lower, led by a 2.6% drop in tech stocks .SPLRCT.
Wall Street's three main indexes were on track for a weekly loss. The benchmark S&P 500 was on course for a weekly drop of more than 3%, its steepest decline in 18 months, led by a more than 6% slide intechnology stocks .SPLRCT.
September has been historically weak for U.S. equities, with the S&P 500 down about 1.2% for the month on average since 1928.
Broadcom AVGO.O shed9.2% after the chipmaker forecast fourth-quarter revenue slightly below estimates, hurt by sluggish spending in its broadband segment.
Other chip stocks such as Marvell Technology MRVL.O dropped 5.1% and Advanced Micro Devices AMD.O shed 4.5%, sendingthe Philadelphia SE Semiconductor index .SOX down 4.2%.
The semiconductor index is set for its biggest weekly drop since March 2020.
Among others, SuperMicro Computer SMCI.O dropped 6.4% after brokerage J.P. Morgan downgraded the AI server maker's shares to "neutral" from "overweight".
Declining issues outnumbered advancers by a 2.79-to-1 ratio on the NYSE and by a 3.37-to-1 ratio on the Nasdaq.
The S&P 500 posted 16 new 52-week highs and 12 new lows, while the Nasdaq Composite recorded 19 new highs and 134 new lows.
Reporting by Johann M Cherian and Purvi Agarwal in Bengaluru; Editing by Shounak Dasgupta and Maju Samuel
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