Stocks fell hard on Friday. The July jobs report showed weak growth. This sparked fears of a recession. The broad market index dropped 1.84%. It ended at 5,346.56. The Nasdaq lost 2.43%. It closed at 16,776.16. This means the tech index fell more than 10% from its recent high. The Dow Jones fell 610.71 points. It finished at 39,737.26. At its lowest point, the Dow was down 989 points.
Job growth slowed in July. The U.S. added only 114,000 jobs. In June, it added 179,000 jobs. Economists expected 185,000 new jobs. The unemployment rate rose to 4.3%. This is the highest rate since October 2021.
The 10-year Treasury yield dropped. It hit the lowest point since December. Investors bought bonds for safety. They feared the Federal Reserve made a mistake. The Fed kept interest rates the same this week.
Big tech companies saw large losses. Amazon had weak second-quarter results. It missed revenue estimates. It also issued a bad forecast. Amazon’s stock fell 8.8%. Intel also had a bad day. It announced weak guidance and layoffs. Intel’s stock dropped 26%. Nvidia lost 1.8%. This followed a 6% loss the day before.
The Nasdaq is in correction territory. It fell more than 10% from its record high. The S&P 500 and Dow are also down. The S&P 500 is 5.7% below its high. The Dow is 3.9% below its high.
Stocks are down because of the weak jobs report. Investors worry about a recession. They are looking for safety in bonds. Big tech companies are also struggling. This is causing more market turmoil.
To read our article about “NASDAQ 100 to see volatility in tech stock rotation” click here.
