It was the selloff that just wouldn't end.
After a rare trading session that extended past 4 p.m. EDT due to technical problems, the Dow suffered its worst day in more than two months on Thursday amid economic fears that were bolstered by a disappointing jobs report.
Today's Markets
The Dow Jones Industrial Average lost 223.32 points, or 2.63%, to 8280.74, the Standard & Poor's 500 sank 26.91 points, or 2.91%, to 896.42 and the Nasdaq Composite sank 49.20 points, or 2.67%, to 1796.52. The consumer-friendly FOX 50 dropped 17.25 points, or 2.52%, to 666.76.
Thursday's selloff, which was marked by exceedingly low volume ahead of the holiday weekend, sent Wall Street to its first three-week slump since March. The markets were slammed by crumbling commodities along with the new Labor Department report, which revealed that nearly half a million Americans lost their jobs in June, sending the unemployment rate to new 25-year highs.
The bulls on Wall Street were clearly disappointed the latest economic data has failed to provide concrete evidence that a recovery is in the cards.
Still, it’s hard to put too much credence into Thursday’s plunge as it came on ridiculously low volume ahead of the holiday weekend. Despite that lack of volume, technical problems forced the New York Stock Exchange to close at 4:15 p.m. EDT, instead of the usual 4 p.m.
Jobs Report Spooks Stocks
The weakness on Wall Street comes after the markets started off the third quarter on a positive note Wednesday. While the S&P 500 last quarter enjoyed its best period since 1998, stocks have hit a brick wall in recent weeks as the markets wait for improving economic gauges.
Those hopes were dashed Thursday by the jobs report, which showed that the U.S. lost 467,000 jobs in June, well above May's 322,000 job losses and significantly worse than the 350,000 jobs economists had predicted were shed. The acceleration in job cuts last month pushed the unemployment rate from 9.4% in May to 9.5% -- the highest level since August 1983.
The weakness on Wall Street comes after the markets started off the third quarter on a positive note Wednesday. While the S&P 500 last quarter enjoyed its best period since 1998, stocks have hit a brick wall in recent weeks as the markets wait for improving economic gauges.Those hopes were dashed Thursday by the jobs report, which showed that the U.S. lost 467,000 jobs in June, well above May's 322,000 job losses and significantly worse than the 350,000 jobs economists had predicted were shed. The acceleration in job cuts last month pushed the unemployment rate from 9.4% in May to 9.5% -- the highest level since August 1983.
The bulls on Wall Street had been hoping for a relatively tame report that could have showed May's figures weren't a one-time blip on the economic radar. Instead, Thursday's jobs report, coupled with weaker-than-expected reports on private payrolls and manufacturing released earlier this week, raise more questions about the timing and strength of a potential second-half recovery for the economy.
Global Markets
In Europe, where the European Central Bank left rates unchanged, stocks plunged even further. London'sFTSE 100 slipped 2.45% to 4234.27, France's CAC 40 fell 3.13% to 3116.41 and Germany's DAX sank 3.81% to 4718.49.
In Asia, Japan's Nikkei 225 fell 0.64% to 9876.15, Hong Kong's Hang Seng dropped 1.09% to 18178.05 and China's Shanghai Composite gained 1.73% to 3060.25.
In Europe, where the European Central Bank left rates unchanged, stocks plunged even further. London'sFTSE 100 slipped 2.45% to 4234.27, France's CAC 40 fell 3.13% to 3116.41 and Germany's DAX sank 3.81% to 4718.49.In Asia, Japan's Nikkei 225 fell 0.64% to 9876.15, Hong Kong's Hang Seng dropped 1.09% to 18178.05 and China's Shanghai Composite gained 1.73% to 3060.25.
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