The 'payroll' number was 'ugly enough' to prod the Fed to cut rates; while the tone was less constructive to big business, than for small-cap stocks. So you got a broad initial rally; followed by a sell-off and then clawing-back by a decent assortment of smaller stocks; especially in new-era sectors; not S&P.

But nothing truly profound from all this ahead of the weekend, and we'll see if they can build more next week. Some of the small stocks filled around 'strikes' that expired (more people are playing 'weekly options' .. and I'm not a fan of a strategy requiring any stellar performance within only a couple days time). 

Sharing my afternoon 'X' comment: Interesting Friday afternoon after 'good news' selling on an early lower Jobs rally suggesting Fed rate cut coming; and then the recovery mostly in small-caps, while big-caps remained suppressed.

Market X-ray: looking forward to rate cuts; and a jittery market. Dynamics at this point aren't changed; some tariff or trade issues remain to be sorted-out; as so does any progress towards peace in Europe.

The Caribbean situation progresses as suspected (goal of removing Maduro); while his sending a couple (elderly) Venezuelan F16's to buzz a US Navy destroyer, was a fairly brazen response to the U.S. sinking a 'drug boat' (and yes we realize blowing it out of the water was a bit extreme; however realistic the sentiments might be). Anyway imagine if we had shot down the old F16's.

Also, the 'War Department' is dispatching ten F35's to reinforce the 'mission' in the Caribbean, presumably from Muniz AFB. Well if one presumes there is a plan to 'take' Maduro out (if done gently enough the Venezuelan people, for the most part will welcome it), we need sufficient force around; not like a failed prior plan that infiltrated a handful of retired Special Forces guys and they got captured and eventually repatriated.. (if anyone remembers the theatrics of an aborted mission a few years ago). Anyway we'll see how that sorts-out too. In a sense the 'drug mission' seems like an excuse, even if morally justified. The goal of freeing Venezuela itself is fairly noble, especially given 'Iranian and of course Cuban' influences that have created consternation in Latin America.

(P.S. since it would take an 'Act of Congress' to change the name form the 'Defense Dept.', they can alternatively 'refer to it as the 'War Department' (as it was into World War 2 by the way); and the 'Defense Secretary' can now be called the 'Secretary of War', which is also the term into the Great War. ok.).

So, non-farm payrolls were not particularly gloomy; just stalling-out in a barely favorable way, so as to temper the Fed's intransigence. Even a couple cuts at this point seem likely during the Fall; so we'll see how that evolves.

I ponder if timing of today's diatribe about the Federal Reserve by Treasury Secretary Bessent is timed to prod them as well (actually surprised he proffered those views 'while' he is in the Office.. but lots of unusual politics these days). I consider him the 'adult in the room' in many of current tribulations and trials.

Bottom-line: it is September, a rough time for the Indexes, and potentially a healthy time for setbacks and consolidations for the major Indexes.

At the same time there are a number of 'Defense' and other conferences and 'security' presentations ahead, which can influence individual tickers aside the seasonally typical behavior of the S&P. Not a problem so long as issues like of course geopolitics and trade, don't trigger a catalyst to really collapse short term, as that would certainly disrupt the ability of small stocks to perform 'even in' the presence of a mediocre extended S&P or other Index.

More By This Author:

Market Briefing For Tuesday, Sept. 2
Market Briefing For Wednesday, Aug. 27
Market Briefing For Monday, Aug. 25