Karel Ruzicka
@RoseThorn__Trade
Czech Republic
2y
US stocks fall after unemployment report, dollar weakens The Dow Jones index fell by 610.71 points, or 1.5 percent, to 39,737.26 points. The broader Standard & Poor's 500 index weakened by 100.12 points, or 1.8 percent, to 5346.56 points. The Nasdaq technology market index fell 417.98 points, or 2.4 percent, to 16,776.16 points. The Nasdaq is already down more than ten percent from its July high, meaning it has entered a correction. For the whole week, the Dow Jones fell by 2.11 percent. The S&P 500 lost 2.06 percent and the Nasdaq fell 3.35 percent. The US economy added about 114,000 new jobs in July, which was less than expected. The unemployment rate in the United States surprisingly rose to 4.3 percent from June's 4.1 percent. It thus reached the highest level since October 2021, the US Department of Labor said today. Analysts polled by Reuters expected an average of 175,000 jobs. According to economists, to keep pace with population growth, at least 200,000 jobs need to be created every month. The report added to concerns that the US economy is slowing faster than expected and the US central bank (Fed) erred in keeping rates on hold at its meeting that ended on Wednesday. The odds that the Fed will cut interest rates at its September meeting also increased by as much as half a percentage point, to 69.5 percent from 22 percent in the previous session. The technology index's losses were helped by a sharp drop in shares of Amazon and Intel after their quarterly results and forecasts that disappointed analysts. Shares of chip manufacturers also continued to decline.
Not investment advice. The author may have financial interests in the mentioned instruments.
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