The S&P 500 dropped Friday, notching its worst week since March 2023, as investors assessed the fallout from a weak August jobs report and ditched leading technology stocks.

The broad index slid 1.73% to settle at 5,408.42, while the Nasdaq Composite shed 2.55% to close at 16,690.83. The tech-heavy index ended the session more than 10% off its record close. The Dow Jones Industrial Average fell 410.34 points, or 1.01%, to end at 40,345.41.

"It's a sentiment-driven move that's largely driven by growth concerns," said Emily Roland, co-chief investment strategist at John Hancock Investment Management. "The market's oscillating between this idea of is bad news bad news, or is bad news good news, and the sense that it may revive hopes that the Fed moves more aggressively than markets anticipate."

Megacap tech stocks tumbled as investors dumped risk assets amid mounting worries about the health of the U.S. economy.

Amazon slid 3.7% and Alphabet slumped 4%. Meanwhile, Meta Platforms lost more than 3%. Broadcom shed 10% on lackluster current-quarter guidance. Other semiconductor names fell in sympathy, with Nvidia and Advanced Micro Devices dropping about 4% each. The VanEck Semiconductor ETF (SMH) declined 4% and posted its worst week since March 2020{

Big semiconductor ETF on pace for worst week since March 2020

The VanEck Semiconductor ETF (SMH) is down more than 12% this week, its worst weekly performance since March 2020, as chip giants take a dive.

Notable laggards in the exchange-traded fund include Broadcom, with a 9% decline on Friday. The chipmaker is reeling after issuing weak revenue guidance for the fiscal fourth quarter, calling for $14 billion, while analysts polled by LSEG anticipated $14.04 billion. Broadcom's nearly 15% decline on the week is also putting the stock on track for its worst weekly performance since March 2020.

Chip juggernaut Nvidia, off nearly 5% Friday and down roughly 15% week to date, is also dragging SMH lower. The stock is on pace for its worst week since September 2022.

Other big weekly losers in SMH include ASML Holding, off 16%, and Intel, down 14.8%.

— Darla Mercado, Gina Francolla

Friday's moves closed out a rocky week for equity markets. The S&P 500 registered a 4.3% decline and its worst week since March 2023. The Nasdaq shed 5.8% for its worst week since 2022, while the 30-stock Dow has slumped 2.9%.

Fresh August jobs data added fuel to concerns of a slowing labor market. A bout of weak data has sparked worries about the health of the economy, spooking markets and denting risk appetite in recent weeks. Nonfarm payrolls grew by 142,000, versus a 161,000 gain expected by economists polled by Dow Jones. However, the unemployment rate edged down to 4.2%, in line with expectations.

"The market in general is looking for direction, and that's going to come from the Federal Reserve," said Charles Ashley, portfolio manager at Catalyst Capital Advisors.

Investors widely expect the Fed to cut rates by at least a quarter-percentage point at the conclusion of its policy meeting later this month, but softening labor market trends have boosted bets that the central bank could go bigger. Traders are split on whether the Fed will cut by a quarter- or half-percentage point, according to CME Group FedWatch Tool.

Stocks slump, Nasdaq notches worst week since 2022

Stocks finished out a volatile week Friday.

The S&P 500 slid 1.73% to settle at 5,408.42, while the Nasdaq Composite shed 2.55% to close at 16,690.83. The Dow Jones Industrial Average fell 410.34 points, or 1%, to end at 40,345.41.

— Samantha Subin

Generative artificial intelligence app development could thrive on iPhone, says TD Cowen

Apple's forthcoming artificial intelligence suite and integration into the latest iPhones could help supercharge growth of AI application development, according to TD Cowen.

"While on-device gen AI inferencing first appeared on Android and PC devices earlier this year, we believe Apple's software ecosystem can drive development of Gen AI apps faster than competitors," analyst Krish Sankar wrote Friday.

"Ultimately, we believe these Gen AI apps are key to increasing or enhancing end-user productivity — the most important value proposition for consumers," Sankar added.

— Brian Evans

U.S. crude oil falls to lowest level since June 2023, posts worst week in nearly a year

U.S. crude oil hit the lowest level since June 2023, putting the benchmark on pace for its worst week in nearly a year, as OPEC+ has failed to reassure the market about the global supply and demand balance.

U.S. crude hit a low of $67.17 earlier in the session and shed 8% for its worst week since October. The Brent global benchmark has fallen 9.8% this week.

OPEC+ delayed plans to increase production by 180,000 barrels per day until December as oil sold off steeply. The output hike will bring about 2.2 million barrels per day back onto the market through the end of next year.

Those barrels will return to the market as oil demand slows in China due to the world's largest crude importer rapidly transitioning to electric vehicles.

— Spencer Kimball

Schwab says 'we sincerely apologize' after Aug. 5 technical issues

A month after the Aug. 5 sell-off resulted in some investors being temporarily unable to access their brokerage accounts, it is unclear if those technology systems will hold up better the next time there is significant market volatility.

CNBC reached out to several brokerage firms that reported issues on Aug. 5 to see if there any changes made in the aftermath.

"Nothing is more important to us than ensuring all our clients have a consistent and reliable experience with Schwab," a Charles Schwab spokesperson said in a statement. "We conduct rigorous retrospective reviews and stress tests to make sure these issues do not repeat. As other firms in the industry experienced, a combination of extremely high volumes from the day's volatility and a technical vendor issue affected our systems and led to log-on issues. We sincerely apologize that some of our clients' experience fell short."

Fidelity declined to comment. Vanguard did not respond to CNBC's request for comment.

— Jesse Pound

Look at international stocks, Charles Schwab investment strategist says

Investors should look at international equities when diversifying their portfolios right now, according to Jeffrey Kleintop, global investment strategist at Charles Schwab.

Kleintop said "everyone's surprised" to see the current outperformance of non-U.S. stocks. But he said they are less exposed to the artificial intelligence plays that previously saw big runs and are now being rotated out of.

Investors should be defensive "on those stocks that really dominated in the first half of the year: those high-flying, AI, tech stocks," Kleintop said on CNBC's "Money Movers." "International stocks are outperforming U.S. stocks here in Q3."

Kleintop listed European, Canadian and U.K. markets as outperformers when compared to the U.S.

— Alex Harring

Goldman Sachs' Hatzius sees three rate cuts ahead

The Federal Reserve will likely lower interest rates by 25 basis points at its upcoming September meeting, Goldman Sachs chief economist Jan Hatzius told CNBC's "Squawk on the Street" on Friday.

Hatzius forecasts three consecutive rate cuts of 25 basis points each by the end of the year.

Although the economist said "there is a rationale" for a 50-basis-point cut, a smaller 25-basis-point cut is more likely, he noted.

— Hakyung Kim

Information technology leads weekly losses

Information technology declined more than 7% week to date, making it the biggest underperformer in the S&P 500.

Chipmakers Broadcom, Intel, KLA Corporation and Nvidia led the sector's declines with sell-offs of 14% and more.

Energy was the following worst-performing sector, declining nearly 6% for the week. APA Corporation dropped around 12%. Valero Energy and Occidental Petroleum shed more than 8% each.

The only positive sector for the week was consumer staples, which was up just 0.7%.

— Hakyung Kim

Goldman Sachs reiterates buy rating on Broadcom amid selling pressure

While investors are selling off Broadcom positions following the chipmaker's latest earnings report, Goldman Sachs is remaining optimistic.

Shares dropped more than 9% after current-quarter revenue guidance and semiconductor business performance spooked traders. That overshadowed a better-than-expected quarterly print.

But Goldman's Toshiya Hari said market participants should look at this as more of a "hiccup" than reason for concern.

"We envision a re-acceleration in the AI Semiconductor business coupled with a cyclical recovery in the non-AI revenue stream … putting the company back on a beat and raise cadence," Hari told clients in a note reiterating Goldman's buy rating.

CNBC Pro subscribers can click here for more on Hari's outlook.

— Alex Harring

Nvidia sheds 14%, heads for worst week since September 2022

Nvidia shares have tanked 14% since the start of the week as investors shed some of 2024's winning technology names.

If the stock closes at this level, the chip giant will notch its worst weekly performance since September 2022, when shares dropped 16.1%.

Shares have more than doubled since the start of the year.

— Samantha Subin

Stocks making the biggest moves midday Friday

Check out the companies making headlines in midday trading:

• Nio — U.S. shares of the Chinese electric vehicle maker popped 4% after a JPMorgan upgrade to overweight from neutral. The firm said Nio could be in for a recovery rally after a tough year so far.
• Super Micro Computer — Shares shed 6% after JPMorgan downgraded the artificial intelligence server producer to neutral from overweight, saying there is no reason to buy the stock while uncertainty exists around regaining regulatory compliance. Super Micro said in late August that it would delay the release of its annual 10-K filing. The bank also slashed its price target by $450 to $500.
• DocuSign — Shares of the software company rose 4% after fiscal second-quarter results topped expectations, fueled by strong subscription growth. DocuSign reported 97 cents in adjusted earnings per share on $736 million of revenue. Analysts surveyed by LSEG were expecting 80 cents per share and $727 million of revenue.

The full list can be found here.

— Hakyung Kim

Fed's Goolsbee advocated for easing policy as jobs picture weakens

Chicago Federal Reserve President Austan Goolsbee cautioned Friday against keeping interest rates elevated while the jobs market weakens.

The policymaker, who does not get a vote this year on the rate-setting Federal Open Market Committee, noted that as inflation eases and the Fed stands put, monetary policy is actually getting tighter.

"The jobs market is slowing down," Goolsbee told CNBC during a "Squawk on the Street" interview. "At a moment like that, when the job market is clearly cooling and we've made a lot of progress on inflation … do you want to tighten when the job market is cooling that much?"

Goolsbee added that "it raises serious questions not just about this meeting [in September] but over the next several months. How do we make sure or make an effort to not have things turn into something worse. That's the critical challenge facing the Fed, in my view."

— Jeff Cox

Chewy, GameStop shares active as 'Roaring Kitty' posts again

Meme stock leader "Roaring Kitty" resurfaced online midday Friday with yet another cryptic image of a cartoon character dropping a stuffed dog toy that resembles the logo of Chewy.

The post on social media platform X sparked action in shares of the online pet food retailer as well as the original meme stock GameStop. Chewy shares last fell about 1%, while GameStop popped 6%.

In early July, Roaring Kitty, whose legal name is Keith Gill, disclosed in a filing that he had bought more than nine million shares of Chewy, or a 6.6% stake. Chewy is connected to GameStop through its founder Ryan Cohen, who became CEO of GameStop in 2023 and has been leading a turnaround in the brick-and-mortar video game retailer.

Gill is known to be a champion of GameStop and has been stirring up trading in the video game company over the past few months. In mid-June, he disclosed a stake of 9.001 million GameStop shares after exiting his massive call options position. It is unclear if he sold his GameStop bet to fund the purchase of Chewy.

— Yun Li

Big semiconductor ETF on pace for worst week since March 2020

The VanEck Semiconductor ETF (SMH) is down more than 12% this week, its worst weekly performance since March 2020, as chip giants take a dive.

Notable laggards in the exchange-traded fund include Broadcom, with a 9% decline on Friday. The chipmaker is reeling after issuing weak revenue guidance for the fiscal fourth quarter, calling for $14 billion, while analysts polled by LSEG anticipated $14.04 billion. Broadcom's nearly 15% decline on the week is also putting the stock on track for its worst weekly performance since March 2020.

Chip juggernaut Nvidia, off nearly 5% Friday and down roughly 15% week to date, is also dragging SMH lower. The stock is on pace for its worst week since September 2022.

Other big weekly losers in SMH include ASML Holding, off 16%, and Intel, down 14.8%.

— Darla Mercado, Gina Francolla

S&P 500 and Dow Jones Industrial Average on pace for worst week since March 2023

After a lukewarm jobs report pushed stocks lower on Friday, both the S&P 500 and Dow Jones Industrial Average were on track to notch their worst weeks since March 2023.

The S&P 500 was on pace to end the week 3.4% lower, while the Dow Jones was last trading 2.1% in the red. The Nasdaq Composite was 5% lower on the week but only on pace for its worst week since April 2024.

— Lisa Kailai Han, George Manessis

Broadcom slumps 8%, semiconductor stocks decline

Broadcom shares shed more than 8% after the semiconductor company issued guidance that was roughly in line with Wall Street's estimates.

Other semiconductor names declined in sympathy, with Marvell Technology last down 3%. Nvidia, Advanced Micro Devices, Taiwan Semiconductor Manufacturing, Micron Technology and ASML Holding all lost at least 2% each.

— Samantha Subin

New York Fed President Williams backs rate cuts

New York Fed President John Williams on Friday endorsed interest rate cuts that markets expect to begin later this month.

"It is now appropriate to dial down the degree of restrictiveness in the stance of policy by reducing the target range for the federal funds rate," the central bank official said in remarks before the Council on Foreign Relations in New York. "This is the natural next step in executing our strategy to achieve our dual mandate goals."

— Jeff Cox

Stocks open slightly higher Friday

Stocks opened marginally higher Friday.

The S&P 500 added 0.2%, while the Nasdaq Composite edged up 0.1%. The Dow Jones Industrial Average rose 125 points, or 0.3%.

— Samantha Subin

Stocks making the biggest moves before the bell

Here are the stocks making moves during premarket trading:

• Bowlero — Shares gained more than 10% after the bowling alley chain's revenue for the fiscal fourth quarter topped Wall Street's expectations. Revenue for the period came in at $283.9 million. According to FactSet, analysts had expected $273.4 million. The higher end of the company's revenue outlook for fiscal 2025 was also above estimates.
• UiPath — The stock rose more than 9% following the software company's better-than-expected second-quarter results. UiPath posted adjusted earnings of 4 cents per share on $316 million in revenue. Analysts surveyed by LSEG estimated 3 cents per share and revenue of $304 million. The company also raised its full-year forecast and expanded its stock repurchase program.
• Broadcom — Shares of the chipmaker fell more than 6% after the company's revenue guidance for the current quarter was less than expected. Broadcom projected $14 billion of revenue for its fiscal fourth quarter, slightly below the $14.04 billion estimated by analysts, according to LSEG. Broadcom did beat third-quarter estimates on the top and bottom lines.

Read the full list here.

— Sean Conlon

U.S. economy added 142,000 jobs in August

The U.S. economy added fewer-than-expected jobs in August, as traders assess the Federal Reserve's next move.

The Bureau of Labor Statistics said Friday that 142,000 jobs were created last month. Economists polled by Dow Jones expected a gain of 161,000 jobs for the month.

The unemployment rate fell to 4.2%, as expected.

— Fred Imbert

Berkshire continues to dump BofA shares

Berkshire Hathaway continued to dump Bank of America shares, extending the selling streak that started in mid-July.

Warren Buffett's conglomerate sold 18.7 million shares for about $760 million in separate sales between Monday and Wednesday, according to a regulatory filing.

Berkshire has sold almost $7 billion worth of the bank stock, driving its stake down to 11.1%. If the ownership goes below 10%, it will no longer be required to disclose transactions within two business days.

Shares of Bank of America dipped slightly in premarket trading Friday. The stock is down more than 2% this week.

— Yun Li

Broadcom, DocuSign, UiPath among stocks making biggest after-hours moves

Check out the companies making headlines in after-hours trading:

• DocuSign — The e-signature software company ticked up nearly 1.2% after posting a top- and bottom-line beat. DocuSign's adjusted earnings of 97 cents per share for the second quarter exceeded analysts' expectations of 80 cents per share, according to LSEG. DocuSign's revenue of $736 million also beat estimates of $727 million for the quarter.
• Broadcom — The semiconductor company slipped more than 6.5%. Broadcom said it sees $14 billion of revenue for the fiscal fourth quarter, while analysts called for $14.04 billion, per LSEG. In the fiscal third quarter, Broadcom reported adjusted earnings of $1.24 per share on revenue of $13.07 billion, while analysts polled by LSEG called for earnings of $1.20 per share on revenue of $12.97 billion.
• UiPath — Shares gained 9.5% after the software company's fiscal second-quarter results came out better than expected. UiPath reported adjusted earnings of 4 cents per share on revenue of $316 million, while analysts surveyed by LSEG called for earnings of 3 cents per share on revenue of $304 million. The company also expanded its stock repurchase program.

For the full list, read here.

— Pia Singh

Stock futures open little changed

U.S. stock futures were little changed shortly after 6 p.m. ET on Thursday.

Dow Jones Industrial Average futures added 51 points, or about 0.1%. S&P 500 futures were slightly above flat, while Nasdaq 100 futures dipped more than 0.1%.

— Pia Singh