The Nasdaq, S&P 500, and Dow All Fell Slightly Friday. The Jobs Report Wasn't Really Why.
2026-09-04 18:17
•Anders Bylund •The Motley Fool
•••••••••• ••• Axe Cap view
US Tech Stumbles, But What About SA?
Mixed US tech earnings and a strong jobs report shook markets, but local investors should look beyond the headlines.
Last Friday’s slight drops in major US indexes weren’t about the jobs report as much as fears the Fed might tighten again soon. Apple’s troubles with foldable devices and Tesla’s underwhelming Cybercab launch highlight tech’s volatility, while Micron’s AI chip expansion shows where growth is. South African investors should note this mix of caution and opportunity. The rand’s reaction depends heavily on US rate expectations. If the Fed hikes, expect USD/ZAR to climb, pressuring rand assets. Financials like Standard Bank or Nedbank could feel the pinch from marginally higher global funding costs. On the flip side, technology exposure through Naspers and Prosus remains a wildcard given their heavy US tech dependencies. If the US tech sell-off deepens, these could lag. But Micron’s AI story might support longer-term optimism on tech innovation. I’d recommend watching USD/ZAR closely and favoring select financials for now, but be ready to adjust if the Fed cools off. this is just our opinion and not financial advice
Watch USD/ZAR and trim some Naspers/Prosus exposure until US rate clarity improves. Maintain holdings in Standard Bank and Nedbank but be prepared to reduce if global rates spike further.
- USD/ZAR
- Naspers
- Standard Bank
- Nedbank
- Aggressive Fed hikes driving USD/ZAR above 20
- Further tech sell-offs dragging down Naspers and Prosus
6/10
Major U.S. stock indexes fell modestly on Friday despite a stronger-than-expected August jobs report showing 162,000 payroll additions versus consensus of 53,000. The strong jobs data raised Fed rate hike odds to 60% for the September meeting, causing short-term Treasury yields to spike. Apple weighed on the market due to production issues with foldable devices, while Tesla dropped 6% following disappointing early reviews of its Cybercab service. Micron Technology surged on plans to double AI memory chip production by 2027.
Our take is based on reporting first published by The Motley Fool.