Stocks saw significant declines in Friday trading following a disappointing jobs report. The Dow Jones Industrial Average dropped 810 points, the S&P 500 fell 2.6%, and the Nasdaq Composite lost 3.1%. The U.S. added only 114,000 jobs in July, well below expectations, leading to an increase in the unemployment rate from 4.1% to 4.3%. Additionally, factory orders fell 3.3%, the largest decline since the start of the Covid-19 pandemic in April 2020. This news led to a sell-off in tech stocks, with the Nasdaq entering correction territory and the S&P seeing its biggest drop since 2022.
The market downturn was also impacted by disappointing guidance and layoffs announced by Intel, causing its stock to plummet by 29%. Amazon also experienced a significant decline, dropping 12.5% after missing financial estimates and issuing a weak forecast. This sell-off marked the second consecutive day of major market declines, with previous drops attributed to other negative economic data such as poor manufacturing output and high initial jobless claims.
Overall, investors reacted negatively to the combination of poor jobs data, factory order decline, and underwhelming corporate performances, leading to significant losses in the stock market. Analysts and investors will be closely monitoring upcoming economic reports and corporate earnings to assess the impact on market stability and future investment decisions.
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