Today’s stock market: real-time updates

Stocks fell sharply on Friday. S&P 500 It would be the worst trading day in about two years as Employment report weaker than expected The decline in July raised concerns that the economy could be heading into a recession.

The market index fell 2%, while Nasdaq Composite Index Down 2.2%. Dow Jones Industrial Average It fell 832 points, a drop of nearly 2.1%.

Friday’s sell-off pushed the Nasdaq into correction territory — more than 10% below its all-time high set nearly a month ago. The Nasdaq 100, which is made up of the 100 largest companies in the composite index, has seen an even steeper correction, down 11% from its 52-week high. The S&P 500 and Dow Jones are down 6% and 4%, respectively, from their all-time highs.

Stocks fell after U.S. job growth slowed more than expected in July, while the employment rate rose to its highest level since October 2021. The Labor Department reported that nonfarm payrolls increased by only 114,000 last month, down from 179,000 in June and below the 185,000 expected by economists surveyed by Dow Jones. The unemployment rate rose to 4.3%.

Some large-cap stocks fell sharply on the day as AmazonAmazon’s second-quarter results stoked investor concerns that the tech giant is overspending on artificial intelligence-related capital expenditures. The e-commerce giant’s shares fell 12.5% ​​after the company’s second-quarter results sparked investor concerns that the tech giant is overspending on artificial intelligence-related capital expenditures. Revenue fell short of Wall Street expectations The losses weighed on the consumer discretionary sector, which was on track for its worst day since a 6.6% drop on May 18, 2022.

IntelAt the same time, in announcing Weak guidance and layoffs. Nvidia After falling 6% the day before, it fell again by more than 5.5% today.

The yield on the 10-year Treasury note fell to its lowest level since December as investors flocked to the bond market for safety. The benchmark rate last stood at 3.82%.

Adam Turnquist, chief technical strategist at LPL Financial, said Friday’s decline was a “natural trend” in a bull market that is pulling back after a big uptrend.

“(The Nasdaq) was overbought in July, as was the semiconductor sector. Right now, a lot of the AI ​​enthusiasm has not really been reality-tested,” Turnquist said, adding, “This is not the end of the AI ​​story.”

It has been a volatile week, with a sharp sell-off in the previous session sending shockwaves through global stock markets. Stocks rallied on Wednesday after the Federal Reserve strongly hinted it would cut interest rates at its next meeting in September while maintaining current rates. But after weak jobs data on Friday, many investors are beginning to believe the central bank should perhaps take action on Wednesday.

“The market will only be spooked by an unexpected move by the Fed if the market thinks the Fed sees or smells something that the market hasn’t yet sensed,” said Yung-Yu Ma, chief investment officer at BMO Wealth Management. “In this case, the market has sensed something that the Fed hasn’t sensed.”