The top line
The stock market opened slightly higher on Friday but quickly turned negative despite the strong jobs report for August, which showed that the unemployment rate fell more than expected as the US added 1.4 million jobs last month.
The Dow Jones Industrial Average fell 1.5%, above 413, on Friday, while the S&P 500 index fell 1.7% and the heavy Nasdaq Composite lost 2.5%.
Stocks rose initially after the release of the latest monthly jobs report: United States 1.4 million jobs added In August, according to the Ministry of Labor.
The unemployment rate fell to 8.4% last month from 10.2% in July (economists had expected the rate to decline to 9.8% in August).
While new data shows that the labor market is making modest gains, the pace of recovery has been achieved Significantly slowed down Thanks to the expiration of the federal stimulus benefits.
However, the market turned negative, as technology stocks remained under pressure afterwards Intensive sale Thursday: Facebook, Amazon, Microsoft and Google’s Alphabet Inc. each fell in early trading.
Shares of Apple and Tesla, which fell between 8% and 9% on Thursday, continued to struggle on Friday, just days after the two companies completed the stock split.
“Today [jobs] The report is another sign that the recovery in the labor market is nearing a point of exhaustion and should signal to lawmakers that another round of fiscal stimulus is needed to keep the economic recovery on track, ”says Charlie Ripley, senior investment analyst at Allianz Investment Management.
The main background
Friday session follows a Sharp sale On Wall Street: The market fell on Thursday, marking its worst day since June as stocks retreated from record highs and technology shares tumbled. The Dow shed 2.8% –More than 800 pointsWhile the S&P is down 3.5% and the Nasdaq is down 5%. Shares of major tech companies, which have played a major role in driving the market’s recovery over the past few months, pushed the market lower on Thursday as the tech sector saw its worst day since March. Ahead of the heavy sell-off on Thursday, stocks had made a strong start to September, despite it being Historically bad month To the markets.