The Dow is on track for the worst week in 2 months

The Dow and the S&P 500 were set Friday to record their worst week in nearly two months.

US stock futures were lower following the September jobs report, which showed that 136,000 jobs were added to the economy, about in line with what was expected.

The unemployment rate dropped to 3.5%, its lowest since December 1969.

Dow, S&P 500 and Nasdaq Composite futures were flat.

Stocks are on track to finish the week deep in the red; it promises to be the worst week for the Dow and the S&P since the start of August, according to Refinitiv.

America’s tight labor market has kept consumer spending strong. Consumers account for two-thirds of gross domestic product.

Nonetheless, this week brought some worrisome signals about the broader ecnomy. Data showed the manufacturing sector contracted in September, the second month in a row. Also, the services sector grew at a weaker pace last month.

All of this has weighed on stocks, helped safe haven assets like bonds and gold higher, and has led to higher expectations for further interest rate cuts by the Federal Reserve.

Expectations for a quarter percentage point rate cut later this month now stand at 84%, compared to less than 50% a week ago, according to the CME FedWatch Tool.