Friday, May 30, 2025
  • Business
  • Investing
  • World-news
  • Stock
No Result
View All Result
Finance Mastery News
Advertisement
  • Business
  • Investing
  • World-news
  • Stock
No Result
View All Result
Finance Mastery News
No Result
View All Result
Home Business

Dow tumbles more than 600 points after weak jobs report

admin by admin
August 6, 2024
in Business
0
Dow tumbles more than 600 points after weak jobs report
0
SHARES
2
VIEWS
Share on FacebookShare on Twitter

Stocks tumbled for the second-straight day Friday as a weaker-than-expected jobs report and a dismal forecast from Amazon added to investor fears of a more substantial slowdown for the U.S. economy.

The Dow Jones Industrial Average closed down 611 points, or 1.5%. The S&P 500 dropped 1.8%, while the Nasdaq Composite lost 2.4%.

Early Friday, the Bureau of Labor Statistics reported that the U.S. added just 114,000 jobs in July — well below the 185,000 expected and down significantly from 206,000 in June.

Meanwhile, the unemployment rate climbed to 4.3%, from 4.1% — its fourth-straight monthly increase and its highest level since October 2021.

The market was already primed for losses as it opened following a negative quarterly earnings report from Amazon late Thursday. The e-commerce giant said customers were ‘continuing to be cautious in their spending’ amid a thinner financial cushion and the continued impact of higher prices.

The bad data kept rolling in as Friday wore on: The Commerce Department’s Census Bureau reported factory orders fell 3.3% in June, the biggest decline since April 2020 at the outset of the pandemic.

Friday’s sell-off pushed the Nasdaq index, which represents tech stocks, into correction territory, meaning it is now down more than 10% from an all-time high, set just a month ago.

Leading Friday’s pullback in stocks was Intel, which cratered 26% after announcing weak guidance and layoffs. Other big names seeing large declines included Prudential financial group, down 10% Booking.com, down 9%. Amazon also fell 9%.

In response to the ugly economic news, traders bought up U.S. Treasuries, which are seen as a safe-haven asset. That pushed the yield on the 10-year note down to about 3.79%, its lowest level since December 2023.

While the lower yield reflects economic distress, it was somewhat of a boon for homebuyers as mortgage rates, which track the 10-year yield, fell to 6.4%, their lowest level in more than a year.

Friday represented the market’s second-consecutive day of major declines. A day earlier, stocks saw heavy losses as they responded to other weaker-than-expected data, including a disappointing manufacturing output report and surprisingly high initial jobless claims.

Following Friday’s jobs report, many traders penciled in a 0.5% cut to the Federal Reserve’s key federal funds rate for the Fed’s next meeting in September.

The Fed usually acts in 0.25% increments — so by making a 0.5% cut, a growing chorus on Wall Street is betting that the Fed will be playing catch up by the time its Federal Open Market Committee (FOMC), which sets interest rates, meets again.

Earlier in the week, the FOMC announced it was keeping the fed funds rate at its current level of about 5.5% in order to continue to put pressure on inflation.

Claudia Sahm, a former Fed economist and the namesake of an economic rule that has predicted past recessions and which is now close to being triggered, said that while the new data are alarming, a true downturn is not yet inevitable.

“We are not in a recession now — contrary [to] the historical signal from the Sahm rule — but the momentum is in that direction,” Claudia Sahm, chief economist at New Century Advisors, said via email. “A recession is not inevitable and there is substantial scope to reduce interest rates.

This post appeared first on NBC NEWS

Previous Post

American recession fears spark selloff in international markets and point to lower U.S. open

Next Post

Warren Buffett’s Berkshire Hathaway sold nearly half its stake in Apple

admin

admin

Next Post
Warren Buffett’s Berkshire Hathaway sold nearly half its stake in Apple

Warren Buffett’s Berkshire Hathaway sold nearly half its stake in Apple

    Fill Out & Get More Relevant News


    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    • Trending
    • Comments
    • Latest
    Criminals are looting millions from ATMs in Europe. Here’s why Germany is a prime target

    Criminals are looting millions from ATMs in Europe. Here’s why Germany is a prime target

    October 28, 2024
    Israeli MP behind bill to expel key UN agency accuses US of interfering with process

    Israeli MP behind bill to expel key UN agency accuses US of interfering with process

    October 28, 2024
    British nurse Lucy Letby loses bid to appeal single attempted murder conviction

    British nurse Lucy Letby loses bid to appeal single attempted murder conviction

    October 25, 2024
    North Korean troops spotted in Russian border region with Ukraine, says Kyiv

    North Korean troops spotted in Russian border region with Ukraine, says Kyiv

    October 25, 2024
    UK prosecutors confirm charges against Tate brothers, including rape and human trafficking

    UK prosecutors confirm charges against Tate brothers, including rape and human trafficking

    0
    Private payroll growth slowed to 122,000 in July, less than expected, ADP says

    Private payroll growth slowed to 122,000 in July, less than expected, ADP says

    0
    The 10 worst states to retire in the U.S. No. 1 isn’t California or New York

    The 10 worst states to retire in the U.S. No. 1 isn’t California or New York

    0
    Boeing taps aerospace veteran Ortberg to replace Dave Calhoun as CEO

    Boeing taps aerospace veteran Ortberg to replace Dave Calhoun as CEO

    0
    UK prosecutors confirm charges against Tate brothers, including rape and human trafficking

    UK prosecutors confirm charges against Tate brothers, including rape and human trafficking

    May 29, 2025
    ‘We want Israel out yesterday, not tomorrow:’ Lebanon’s leader urges US to pressure Israel to withdraw troops

    ‘We want Israel out yesterday, not tomorrow:’ Lebanon’s leader urges US to pressure Israel to withdraw troops

    May 29, 2025
    Zelensky departs Germany with pledge for help with long-range weapons, but no Taurus missiles

    Zelensky departs Germany with pledge for help with long-range weapons, but no Taurus missiles

    May 29, 2025
    Costa Rican police say they busted crime ring trafficking Asian migrants to US

    Costa Rican police say they busted crime ring trafficking Asian migrants to US

    May 29, 2025

    Recent News

    UK prosecutors confirm charges against Tate brothers, including rape and human trafficking

    UK prosecutors confirm charges against Tate brothers, including rape and human trafficking

    May 29, 2025
    ‘We want Israel out yesterday, not tomorrow:’ Lebanon’s leader urges US to pressure Israel to withdraw troops

    ‘We want Israel out yesterday, not tomorrow:’ Lebanon’s leader urges US to pressure Israel to withdraw troops

    May 29, 2025
    Zelensky departs Germany with pledge for help with long-range weapons, but no Taurus missiles

    Zelensky departs Germany with pledge for help with long-range weapons, but no Taurus missiles

    May 29, 2025
    Costa Rican police say they busted crime ring trafficking Asian migrants to US

    Costa Rican police say they busted crime ring trafficking Asian migrants to US

    May 29, 2025

    Disclaimer: financemasterynews.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Browse by Category

    • Business
    • Investing
    • Stock
    • World-news

    Recent News

    UK prosecutors confirm charges against Tate brothers, including rape and human trafficking

    UK prosecutors confirm charges against Tate brothers, including rape and human trafficking

    May 29, 2025
    ‘We want Israel out yesterday, not tomorrow:’ Lebanon’s leader urges US to pressure Israel to withdraw troops

    ‘We want Israel out yesterday, not tomorrow:’ Lebanon’s leader urges US to pressure Israel to withdraw troops

    May 29, 2025
    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 financemasterynews.com | All Rights Reserved

    No Result
    View All Result

    Copyright © 2025 financemasterynews.com | All Rights Reserved