Exclusive Content:

Volvo se zavzema za ohranitev prepovedi prodaje...

Write a detailed and engaging article about Volvo se...

Kabát není potřeba: Zimním trendům 2024 vévodí...

Write a detailed and engaging article about Kabát není...

Double debut in Shanghai – AUDI and...

Write a detailed and engaging article about Double debut...

Investors shaken as disappointing jobs report causes Nasdaq to enter correction and Dow to drop 600 points

US stocks took a significant hit on Friday following the release of the July jobs report, which showed a further cooling in the labor market. This news fueled concerns that the Federal Reserve’s stance on keeping interest rates „higher for longer“ might lead to a recession. The Nasdaq Composite dropped 2.6%, pushing the tech-heavy index into correction territory, defined as a more than 10% drop from its recent high on July 10. The Dow Jones Industrial Average slumped 1.5%, or more than 600 points, while the S&P 500 sank 1.8%. All three major indexes recorded weekly losses, with the S&P and the Dow falling 2% and the Nasdaq shedding 3%. The Russell 2000 fared even worse, posting a weekly loss of about 6.8%.

The disappointing jobs report showed that the US economy added fewer jobs than expected in July, with the unemployment rate unexpectedly rising to 4.3%, according to the Bureau of Labor Statistics‘ nonfarm payrolls report. These signs of a slowdown in the labor market are likely to increase recession fears and expectations for rate cuts. Traders are now pricing in three rate cuts this year, with bets on a 50 basis-point reduction in September. The yield on the benchmark 10-year Treasury dropped further below the 4% level after the labor-market update, trading around 3.79%.

In addition to the economic data, news on individual stocks was also downbeat. Chipmaker Intel’s bruising earnings report added to the pressure on stocks amid questions about the payoff of AI investments for Big Tech. Intel announced job cuts and dividend suspensions after its sales forecast fell short and it missed on earnings, causing its shares to plummet over 26% and dragging down other chip stocks. Amazon stock slid almost 9% following sales guidance that undershot Wall Street estimates, while Apple shares were a relative winner, up less than 1% after beating on earnings despite a slide in iPhone sales.

The stock market’s sell-off on Friday followed a series of data showing cracks in the US economy, wiping out gains spurred by expectations for a September interest-rate cut. This left Wall Street wondering whether the Federal Reserve’s delay in lowering rates might lead to an economic downturn.

Looking ahead, investors will be closely watching the tech sector, which has been hit hard by the recent market volatility. A fresh slate of major companies is set to report earnings next week, including Disney, Uber, Eli Lilly, and Novo Nordisk. The market will be looking to see if the tech sector can rebound from correction territory and how these upcoming earnings reports will impact market sentiment.

Overall, the market’s reaction to the disappointing jobs report and other economic data highlights the growing concerns about the state of the US economy and the Federal Reserve’s response. As investors brace for potential rate cuts and navigate the uncertainty in the market, the coming weeks will be crucial in determining the direction of the stock market and the broader economy.

Latest

Kabát není potřeba: Zimním trendům 2024 vévodí elegantní bundy, které vás zahřejí – MSN

Write a detailed and engaging article about Kabát není...

Double debut in Shanghai – AUDI and the AUDI E concept – Audi MediaCenter

Write a detailed and engaging article about Double debut...

Newsletter

Don't miss

Community Colleges Collaborate to Enhance AI Education

Houston Community College, along with Miami Dade College and...

Is Compliance Contagious? Exploring the Impact of (Non) Compliance on Society | SCCE

Calvin London, the Founder & Principal Consultant for The...

Volvo se zavzema za ohranitev prepovedi prodaje vozil z motorji z notranjim zgorevanjem po letu 2035 – VMax.si

Write a detailed and engaging article about Volvo se zavzema za ohranitev prepovedi prodaje vozil z motorji z notranjim zgorevanjem po letu 2035  VMax.si. The...

Kabát není potřeba: Zimním trendům 2024 vévodí elegantní bundy, které vás zahřejí – MSN

Write a detailed and engaging article about Kabát není potřeba: Zimním trendům 2024 vévodí elegantní bundy, které vás zahřejí  MSN. The article should be structured...

Double debut in Shanghai – AUDI and the AUDI E concept – Audi MediaCenter

Write a detailed and engaging article about Double debut in Shanghai – AUDI and the AUDI E concept  Audi MediaCenter. The article should be structured...