Stocks closed lower on Friday after a weaker-than-expected U.S. jobs report gave way to worries about a slowing U.S. economy, even as expectations for a Federal Reserve rate cut were solidified.

The S&P 500 finished the day down 0.32% at 6,481.50, while the Nasdaq Composite declined 0.03% to settle at 21,700.39. The Dow Jones Industrial Average closed down 220.43 points, or 0.48%, at 45,400.86.

All three leading indexes had reached fresh record intraday highs earlier in the session. At their peaks, the broad market index, the tech-heavy Nasdaq and the blue-chip Dow were up about 0.5%, 0.8% and 0.3%, respectively.

The economy added just 22,000 jobs in August, the Bureau of Labor Statistics reported Friday. That's below the 75,000 that economists polled by Dow Jones had expected. The unemployment rate also rose to 4.3%, in line with expectations.

The report supported expectations for at least a quarter-point rate cut by the Fed at its meeting later this month. Traders also put a half-point rate cut into play, per the FedWatch tool.

"Slower job gains, combined with an uptick in the unemployment rate and moderating wage growth, support the view that the rate of positive change in the labor market has slowed significantly," said Jamie Cox, managing partner at Harris Financial Group. "These employment data give the Fed all the reasons it needs to shift its balance of risks and lower rates in two weeks."

Investors were heading into the August nonfarm payrolls report with stocks coming off of a fresh record. They are betting rate cuts will recharge an economy that is flagging but still in no danger of a recession. Though, these latest jobs figures, where the June payrolls number was revised to show the first job loss since the pandemic, may start to raise recessionary concerns.

Even with Friday's losses, the S&P 500 and the Nasdaq still finished the week with gains, rising 0.33% and 1.14%, respectively. The Dow, however, saw losses on the week, finishing down 0.32% in the period.

JPMorgan and Wells Fargo paced the negative reversal on fears a slowing economy may hit loan growth. Industrials Boeing and GE Aerospace also got hit, as a troubled economy could dampen order growth.

However, Broadcom was a standout performer, with the stock popping 9.4% on the heels of the chipmaker's latest quarterly results beating Wall Street's expectations. Nvidia shares dropped 2.7%, as Broadcom's strong results may signal there's growing competition for the AI darling. Palantir, another artificial intelligence favorite that's been under pressure of late, slid about 2%.