CNBC Business News Update - Market Open: Stocks Higher, Weak August Jobs Report Gives Fed "Permission" To Cut Interest Rates, Elon Musk Trillion Dollar Pay Deal 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 Ettinger, CNVC, all-time highs for the major averages out of the gate this morning after a weaker than expected jobs report. And the highest unemployment rate in the U.S. in nearly four years, investors are hoping the data will trigger the Fed to cut interest rates. The Dow is up 81 points being led higher by shares of Sherwin-Williams up 2%. the S&P 500 index up 23. The NASDAQ up 105 points a half percent. InVIDIA shares falling this morning down two and a half percent. It was another weak jobs report. Nob 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 Santell. This adds to a pile of data showing a weakening labor market in the U.S. Investors hoping this fuels the Fed to cut interest rates to respond. And the markets definitely like the idea.

Bad news is good news now. It means the Fed is going to cut rates for sure this month. Is that your expectation based on what you're seeing here too? This gives the Fed the green light to cut. And that's why markets are positive. The employment market is cracking. And often if you wait too long, while employment markets crack, it can lead to a recession. New Vines, Sarah Malick, and Cesar Malik.

CNBC's Becky Quick. 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 and gas. is. I mean, nothing is picking up. I don't know. You would expect it to see 100,000 manufacturing jobs created in the last three months. Sure. A hundred thousand, easily. Mortgage rates are at their lowest since last October. According to Mortgage News Daily, they could fall later today again. As the yield on the 10-year treasury drops reacting to that week jobs report, the average rate on a 30-year home loan this morning under 6.5% at 6.45%. Gold hit a fresh intraday all-time high. today. $3,644 an ounce. Gold is often used as a hedge when investors worry about other things. 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,

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