Market Selloff Intensifies - InvestingChannel

Market Selloff Intensifies

Stocks fell sharply on Friday with the S&P 500 headed for its worst session in roughly two years, as a much weaker-than-anticipated jobs report for July ignited worries that the economy could be falling into a recession.

The Dow Jones Industrial index jettisoned 824.88 points, or 2%, to 39,523.09.

The much-broader index slid 119.22 points, or 2.2%, to 5,327,49.

The NASDAQ hesitated 443.72 points, or 2.6%, to 16,747.20.

Friday’s selloff pushed the NASDAQ into correction territory — down more than 10% from an all-time high set nearly a month ago. The NASDAQ-100, which is made up of the 100 largest names in the Composite, was deeper in a correction, trading 11% below its 52-week high. The S&P 500 was 6% below its all-time highs and Dow 4% below its peak.

Intel, meanwhile, cratered 29% after announcing weak guidance and layoffs. Nvidia lost more than 5.5%, 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 have 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 3.82% from Thursday’s 3.97%. Treasury prices and yields move in opposite directions.

Oil prices slumped $2.49 at $73.82 U.S. a barrel.

Gold prices moved lower $7.40 to $2,473.40.

Related posts

Advisors in Focus- January 6, 2021

Gavin Maguire

Advisors in Focus- February 15, 2021

Gavin Maguire

Advisors in Focus- February 22, 2021

Gavin Maguire

Advisors in Focus- February 28, 2021

Gavin Maguire

Advisors in Focus- March 18, 2021

Gavin Maguire

Advisors in Focus- March 21, 2021

Gavin Maguire