Stocks slid Friday as a much weaker-than-anticipated jobs report for July ignited worries that the economy could be falling into a recession.
The Dow Jones Industrials jettisoned 688.54 points, or 1.7%, to 39,659.43.
The S&P 500 index slid 133.76 points, or 2.5%, to 5,312.92.
The NASDAQ hesitated 553.82 points, or 3.2%, to 16,640.33.
Amazon led the losses, sliding 9% after missing the Street’s estimates on second-quarter revenue and issuing a disappointing forecast. Intel cratered 26% after announcing weak guidance and layoffs. Apple shares inched lower despite the iPhone maker posting a fiscal third-quarter earnings beat as most tech stocks were hit hard following the weak jobs figures.
Nvidia lost 4.5% following a 6% loss a day before.
Stocks with the most to lose from a recession also declined. Bank of America lost 3%, and Caterpillar shares were also lower. The 10-year Treasury yield fell to its lowest since February as investors flooded into bonds for safety.
Friday’s stock pullback would added to a steep selloff from the previous session. The Dow and S&P 500 each fell more than 1% on Thursday, while the NASDAQ slid 2.3%. Those declines sent ripples around the world, with the Japanese Nikkei losing 5.8% overnight.
July job growth in the U.S. slowed more than expected, while the employment rate rose to the highest since October 2021. Non-farm payrolls grew by just 114,000 last month, the Labor Department reported, a slowing from 179,000 jobs added in June and below the 185,000 expected by economists polled by Dow Jones. The unemployment rate increased to 4.3%.
Prices for the 10-year Treasury popped, with yields falling to 3.81% from Thursday’s 3.97%. Treasury prices and yields move in opposite directions.
Oil prices slumped $2.53 at $73.78 U.S. a barrel.
Gold prices hiked $32.10 to $2,512.90.
