Dow plunges nearly 1,000 points after report shows sharp drop in U.S. hiring

[Polybius]

Source: CBS News

Stocks tumbled Friday after new government data showed a steep decline in hiring in July, spurring concerns that economic activity is slowing faster than economists expected.

Two hours into the session, the blue-chip Dow Jones Industrial Average was down 984 points, or 2.4%, to 39,415. The broader S&P 500 sank 2.5%, while the tech-heavy Nasdaq Composite lost nearly 3%, fueled by disappointing quarterly earnings from bellwethers such as Amazon and Intel.

Market analyst Adam Crisafulli of Vital Knowledge said the weak employment numbers will heighten fears the economy is losing steam. "This labor report fell short on pretty much every single metric," he said in a note to investors.

Although stocks have hit record highs this year, propelled in part by excitement over artificial intelligence companies, investors have pulled back in recent weeks. Some analysts think the Federal Reserve has waited too long to lower interest rates, raising the risk of a hard landing for the economy, or even a recession.

Read more: https://www.cbsnews.com/news/stocks-today-why-falling-jobs-report-2024/

[Lonestarblue]

1. The FED needs to lower interest rates now. Waiting until September may see us in a recession.

Is Powell deliberately trying to help Trump?

[jimfields33]

4. The stock market is too hot. Needs a 20 percent

correction. It’s like a ballon that has too much air in it. You release some so it doesn’t pop. This is good.

[Scruffy1]

8. You are right.

It's mostly hot air. The tech business has always been a bubble followed by a bust. Nvidia is a good example. They now have a lead in AI but they are not the only smart people out there. Sooner or later the competition catches up or surpasses you. Corrections are good things and have nothing to do with politics. Only helium stock keeps going up. Now if you just can convince the voters that the POTUS doesn't control the markets and the price of gas in a free market system. The psychology of the market is weird. I remember the last tech bubble over 20 years ago. When the cook in a restaurant stars talking about tech stocks it's time to sell. Corrections are a good thing.

[BumRushDaShow]

2. The Dow is WAY overdue for a correction

It is over-bought!

Although stocks have hit record highs this year,

And what goes up must come down.

[al bupp]

11. But where else does the money have to go?

I mean in the long term.

[Klarkashton]

3. There were still a lot of jobs created.

This is all bullshit hysteria.

[FloridaBlues]

5. When we have a great report stock market goes low because fed might not drop rate.

Today report the market goes down too.
Let’s hope the fed gets off their ass and drip rate long overdue. Crazy reactions.

[highplainsdem]

6. A lot of this is about a correction for tech stocks, especially AI. From Bloomberg.via Yahoo (no paywall):

https://ca.finance.yahoo.com/news/nasdaq-100-correction-territory-ai-134752383.html

[angrychair]

7. I'm confused by this reaction

Isn't the whole point of all this by the Fed supposed to be to increase unemployment and slow the economy?
What the hell is the stock market going on about? It's not like it's unexpected. This is unnecessarily freaking out people that don't understand this is intentional.
I have heard economists say, repeatedly, that the "ideal" unemployment is 4-5%

I would add that I am completely against our continuous growth model economy we have now as unrealistic and just not the best model for a sustainable and stable economy.

[cstanleytech]

9. I feel sorry for the few people who actually rely on stocks to live on. For the wealthy though? They can fuck off.

[IronLionZion]

10. 4,000 points would be a 10% correction

which is long overdue.