The stock market opened slightly higher on Friday but quickly turned negative despite a solid August jobs report, which showed the unemployment rate fell more than expected as the US added 1.4 million jobs last month.
The Dow Jones Industrial Average was down 1.5%, up 413 points on Friday, while the S&P 500 fell 1.7% and the tech-heavy Nasdaq Composite lost 2.5%.
Stocks moved higher after the latest monthly jobs report was released in August, according to the Labor Department: The US added 1.4 million jobs in August.
The unemployment rate fell from 10.2% in July to 8.4% in July last month (economists were expecting a drop to 9.8% in August).
While new data suggests the labor market is making modest gains, the pace of recovery has increased significantly thanks to the end of federal stimulus gains.
However, as tech stocks remained under pressure on Thursday due to market fluctuations, the market declined negatively: Facebook, Amazon, Microsoft and the Google-parent alphabet were all down in early trading.
Shares of both Apple and Tesla, which fell between 8% and 9% on Thursday, continued on Friday, days after the completion of the stock split of the two companies.
“Today’s [jobs] The report is another indication that the labor market recovery is close to exhaustion and lawmakers should indicate that another round of fiscal stimulus will be needed to keep the economic recovery on track, ”says Charlie Ripley, senior investment strategist at Allianz Investments Are management.
Friday’s session comes after a sharp sell-off on Wall Street: The market slumped on Thursday, the worst day since June as shares of record highs and tech stocks fell. The Dow slipped 2.8% -more by 800 points, while the S&P fell 3.5% and the Nasdaq fell 5%. Shares of Big Tech companies, which have been instrumental in leading the market’s return in the past few months, were short on Thursday as the tech sector had its worst day since March. Before Thursday’s sell-off, the shares had a strong start in September, despite it being a historically bad month for the markets.
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