Technology came under pressure in S&P 500, with the Nasdaq 100 down 1.5 per cent Image Credit: Bloomberg

President Joe Biden predicted the Federal Reserve would move to cut rates, as the administration places greater emphasis on housing costs in its election fight against Donald Trump.

"I can't guarantee it. But I bet "- you betcha "- those rates come down more, because I bet you that that little outfit that sets interest rates, it's going to come down," Biden said Friday in a speech in Philadelphia. He did not specify when he thought the cuts might begin.

Jobs report released

Friday's jobs report signals a labor market that is gradually down-shifting, with moderating employment and pay gains that raise hopes that growth will continue without much risk of sparking another round of inflation. That scenario gives the Fed room to lower rates.

The job market and overall economy are in a delicate spot, where Wall Street wants them to continue growing, but not so much that they raise pressure on inflation.

The unemployment rate rose to 3.9 per cent in February after holding at 3.7 per cent for three straight months, while wage growth slowed to 0.1 per cent on a monthly basis.

The ultimate goal is for inflation to cool enough to convince the Federal Reserve to lower its main interest rate from its highest level since 2001. Such a move would release pressure on the financial system and the economy, which has so far remained out of a recession despite high interest rates.

Tech marks decline

Just when investors were wrapping their heads around a mixed jobs report, weakness in the S&P 500's most-influential group weighed heavily on trading. Technology came under pressure, with the Nasdaq 100 down 1.5 per cent and Nvidia Corp. halting a six-day winning streak.

Tesla Inc. extended this week's slide to 13 per cent and Broadcom Inc. tumbled on soft chip sales.