Stock Market; Dow Drops 600 Points, Nasdaq Slips Into Correction Amid Disappointing Jobs Report"

Stock Market;

Dow Drops 600 Points, Nasdaq Slips Into Correction Amid Disappointing Jobs Report"

Stocks took a sharp downturn on Friday as a significantly weaker-than-expected July jobs report heightened concerns about a potential economic recession.

The S&P 500 fell 1.84%, closing at 5,346.56, while the Nasdaq Composite dropped 2.43%, ending at 16,776.16, marking a decline of over 10% from its recent peak. The Dow Jones Industrial Average also fell, losing 610.71 points, or 1.51%, to settle at 39,737.26. During the day's low, the Dow had plummeted 989 points.

The market's decline was triggered by a slowdown in July's job growth in the U.S., coupled with a rise in the unemployment rate to its highest since October 2021. The Labor Department reported a mere addition of 114,000 nonfarm payrolls in July, down from June's 179,000 and below the 185,000 expected by economists. The unemployment rate rose to 4.3%.

Investor flight to safety pushed the 10-year Treasury yield to its lowest level since December, driven by fears that the Federal Reserve's decision to maintain current interest rates might have been a misstep.

Major tech stocks saw significant losses, with Amazon falling 8.8% following disappointing Q2 results and forecasts, Intel plummeting 26% due to weak guidance and layoffs, and Nvidia dropping 1.8% after a 6% loss the previous day.

The Nasdaq is now in correction territory, down more than 10% from its record high, while the S&P 500 and Dow are 5.7% and 3.9% below their all-time highs, respectively.