Dow Flops, NASDAQ Enters Correction Territory - InvestingChannel

Dow Flops, NASDAQ Enters Correction Territory

Stocks fell sharply on 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 Industrial index jettisoned 610.71 points, or 1.5%, to 39,737.26.

The much-broader index slid 100.12 points, or 1.8%, to 5,346,56.

The NASDAQ hesitated 417.98 points, or 2.4%, to 16,776.16.

The NASDAQ is the first of the three major benchmarks to enter correction territory — down more than 10% from its record high. The S&P 500 sank 5.7% off its all-time high and the Dow was 3.9% its peak.

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 3.80% from Thursday’s 3.97%. Treasury prices and yields move in opposite directions.

Oil prices slumped $2.33 at $73.98 U.S. a barrel.

Gold prices moved lower $1.90 to $2,478.90.

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