The Dow Jones index fell 1.5%, the technology-dominated Nasdaq 2.4% and the S&P 500 1.8%, according to preliminary results.
The Dow Jones index fell 1.5%, the technology-dominated Nasdaq 2.4% and the S&P 500 1.8%, according to preliminary results.
The New York Stock Exchange suffered a major setback on Fridayspooked by worse-than-expected US employment figures, which raise fears of a slowdown in the world’s largest economy.
The Dow Jones index fell 1.5%, the technology-dominated Nasdaq 2.4% and the S&P 500 1.8%.according to preliminary results. Bond yields fell, suggesting that the Federal Reserve (Fed) may soon have to cut rates more sharply than expected.
Wall Street thus had its worst day since the 2020 Covid crash, losing $2.9 trillion in market value on this day alone.
In this context, the VIXeither “fear index”soared on Friday to levels not seen for 15 months, as traders were forced to hedge amid a sea of red bathed Wall Street.
S&P 500 VIX Futures jumped to 29.60 before easing to 25.02, hitting their highest level since March 2023.
The official July employment report showed that fewer jobs were created last month than expected.with nonfarm payrolls rising by 114,000 last month, the lowest since January 2021, and down from the revised 179,000 in June. Economists had forecast a July figure of 177,000.
The unemployment rate also rose to 4.3%, from 4.1% in June.while month-over-month growth in average hourly earnings was 0.2%, down from 0.3% the previous month.
The fear of slowing growth was reflected in the fixed-income market, with the US 10-year bond yield sinking further below 4%.
Source: Ambito
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