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US stocks closed in a sea of red on Friday to cap off a volatile trading week as investors digested a crucial jobs report that provided clues to the size of this month's expected interest rate cut.

Tech stocks were the biggest laggard with the Nasdaq Composite ( ^IXIC ) plunging more than 2.5%. The S&P 500 ( ^GSPC ) and Dow Jones Industrial Average ( ^DJI ) dropped around 1.7% and 1%, respectively.

It was the worst week for the Nasdaq since June of 2022 while the S&P experienced its worst week since March of 2023.

The US economy added 142,000 jobs in August , which trailed expectations for about 165,000 jobs added. Prior month job growth was also revised lower, as the labor market showed signs of continued cooling. The unemployment rate, however, ticked back down to 4.2%.

The report shifted expectations for the Fed to enact a more sizable rate cut at its meeting in less than two weeks. According to the CME FedWatch tool , traders see a 50-50 chance of a 50 basis point cut, which was up significantly from Thursday.

On Friday, Fed Governor Chris Waller reiterated recent phrasing from Fed Chair Jerome Powell that "the time has come" to lower interest rates.

"If the data supports cuts at consecutive meetings, then I believe it will be appropriate to cut at consecutive meetings," Waller said in prepared remarks delivered at the University of Notre Dame.

Fed predictions for 2024: What experts say about the possibility of a rate cut

Meanwhile, in corporate news, chipmaker Broadcom's ( AVGO ) shares fell more than 10% on the heels of a lackluster sales forecast . While the Apple supplier is benefiting from a surge in AI spending, its other divisions are falling short.

That dragged down other chip stocks, with shares of AI heavyweight Nvidia ( NVDA ) falling about 4%.