CNBC Business News Update - Market Midday: Stocks Lower, Weak August Jobs Report, Unemployment Rate At The Highest In 4 Years 9/5/25

Episode Date: September 5, 2025

From Wall Street to Main Street, the latest on the markets and what it means for your money. Updated regularly on weekdays, featuring CNBC expert analysis and sound from top business newsmakers. Anchored by CNBC's Jessica Ettinger.

I'm Jessica Eddinger, CNBC, all-time highs for the major averages, and then a turnaround. Stocks are in the red this afternoon initially. Investors were celebrating a weak August jobs report, hoping that would trigger the Fed to cut interest rates later this month, but then they started to realize the weak job market could be a bigger problem. The Dow, down 273 points this afternoon, a half percent, InVIDIA shares leading it lower. The S&P 500 index now down 30 points, a half percent. The NASDAQ is down 39 points. It was another weak jobs report.

Knob farm payrolls for the August job, job jobs report, 22,000. The unemployment rate comes in at higher. 4.3. We haven't had a rate that high going all the way back to 2021. CNBC's Rick Santelli. This adds to a pile of data showing a week. labor market in the U.S. CNBC's Carl Keenton and Mad Money host, Jim Kramer, had this take on the weak jobs report.

You don't see any manufacturing. You don't see any of the construction jobs. Manufacturing lost 12. And year to date, Jim, we've lost 78,000 manufacturing jobs this year. It's astounding. We're not seeing what I would have thought would be just a gigantic resource explosion. We're not seeing any pickup in oil. gas. Nothing is picking up. I don't know. You would expect it to see 100,000 manufacturing jobs created

the last three months. Sure. A hundred thousand, easily. Here's a take from J.P. Morgan's David Kelly on CNBC. It's getting softer and the economy's not in recession yet. You know, when we told about recessionary signals, the most important thing is don't think about this like the pandemic recession or the great financial crisis. Those were mega recessions. We are sort of slipping slowly into this here. Obviously, we think we're going to get some rate cuts out of. this, but that's not going to fix anything. The most important thing that I think the administration needs to realize is if you cut rates here, you're going to cut the interest income of retirees, you're going to tell people that more rate cuts coming. So why bar an hour?

Let's wait and see. I mean, the whole history of the 21st century is rate cuts don't stimulate growth. They didn't in any way after the great financial crisis. So don't look to the Fed to bail out the economy. Mortgage rates have plunged to their lowest in about a year this afternoon on the back of weak jobs data. The average rate on the 30-year home loan, now 6.2% this afternoon, according to Mortgage News Daily. Tesla's board proposing another compensation plan

for CEO Elon Musk, that's a longer-term incentive package. It's a 10-year deal with a maximum payout of nearly a trillion dollars. You can see the board struggling with this question. What do you get the guy who's the world's richest man, right? And how do you keep him motivated? the first trillion-dollar pay package, right, if he meets all of these tranches. The company is pointing out that to reach these milestones, they're going to be twice the size of

Nvidia, the current rate, twice the size of Microsoft, twice the size of Apple. These are huge goals to really push Musk to do what he does best, which is aim for the moon. The Wall Street Journal's Tim Higgins on CNBC, the NFL with an international game tonight, the first of many this season. Chargers and Chiefs in Sao Paulo, Brazil. New in theaters, Warner Brothers horror film The Conjuring Last Rites. The Powerball Jackpot for tomorrow night, pushing $2 billion at $1.7 billion. I'm Jessica at Inger, CNBC. You can stream Squat Box. Stream Squawk on the street. If you can't catch back money in real time, watch us later on CNBC Plus. Start streaming at CNBC.com slash plus.