Robinhood Stock Falls As Dismal Jobs Report Sparks Financial Sector Sell-Off

Robinhood shares fell Friday afternoon as financial services stocks retreated after a weak August jobs report intensified concerns about an economic slowdown, according to Benzinga. The U.S. economy added only 22,000 nonfarm payrolls last month, the lowest monthly hiring since 2020, with downward revisions for June and July further underscoring labor market weakness. Cyclical sectors, particularly financials, faced heavy pressure following the weak jobs report. Although the data strengthened expectations for Federal Reserve rate cuts, concerns about reduced trading activity and investor engagement hurt sentiment for brokerage firms like Robinhood. Broader markets also declined, with the S&P 500 and Dow Jones pulling back from record highs. According to Benzinga Pro, Robinhood shares traded down 2.07% to $100.78 on Friday afternoon.