The holiday-shortened week proved to be a rough one for traders and investors alike. By the time the dust settled today, the Dow Jones Industrial Average (DIA – 13,113.5) had shed 250 points, or 1.87%, to close below both its 10-day and 20-day moving averages for the first time since August 28. Of its 30 components, only Johnson & Johnson (JNJ) managed to lock in a gain on the session. For the week, the Dow stumbled 1.83% lower.

The broad market was soundly smacked lower on Friday following the release of weaker-than-expected jobs data just before the open. The Labor Department announced that U.S. nonfarm payrolls dropped by 4,000 in August, marking the first decline since August 2003. Economists on the Street had actually predicted an increase of 115,000. What’s more, payrolls in June and July were revised lower by a cumulative 71,000.

Traders are now confident that the weak economic data will force the Fed to cut interest rates. The Fed funds futures market is pricing in a 75% chance for a 50-basis-point cut in September, after giving it an under-50% chance ahead of the August payrolls report. By the end of the year, the futures market anticipates the fed funds rate, now at 5.25%, could drop to 4.25%. The Federal Open Market Committee is currently scheduled to meet on September 18.

Elsewhere, the S&P 500 Index (SPX – 1,453.55) tripped 25 points, or 1.69% lower today as it dropped below its 10-day trendline. However, the index closed perched on its 20-day moving average after finding support at the 1,450 level. The Nasdaq Composite (COMP – 2,565.7) surrendered 1.86% on the day, tumbling below its 10-day moving average. The tech-laden index remains above its 20-day moving average. For the week, the SPX shed 1.39% and the COMP lost 1.18%.