adminA gauge of global stocks fell for a second straight day and was poised for its biggest weekly decline in three months last Friday as a plunge in tech shares resumed, while the dollar kept climbing following the US payrolls report.
US job growth slowed in August as financial aid from the government was depleted, with non-farm payrolls increasing by 1,371 million jobs versus the climb of 1,734 million in the prior month. Expectations were for the addition of 1,4 million jobs. The unemployment rate fell to 8,4 percent from 10,2 percent.
“The job market recovery has down-shifted to a slower pace in the last few months amid the surge in virus cases. There’s still uncertainty about the virus as we go into the fall,” said Russell Price, chief economist at Ameriprise Financial Services in Troy, Michigan.
“Investors are primarily considering that the surge in virus cases slowed down the recovery and we still have virus concerns coming into the fall which may result in the jobs recovery to be slower than previously expected.”
On Wall Street, stocks were battered for a second consecutive session, as technology shares once again led a sell-off.
The tech sector dropped 2,88 percent and was on track for its biggest two-day percentage drop in almost six months.
The Dow Jones Industrial Average fell 495,16 points, or 1,75 percent, to 27,797.57, the S&P 500 lost 67,31 points, or 1,95 percent, to 3,387.75 and the Nasdaq Composite dropped 295,44 points, or 2,58 percent, to 11,162.67.
The pan-European STOXX 600 index advanced in a choppy session following the US payrolls report.
Stocks had initially rebounded from their worst day in more than a month on gains in bank shares before losing steam to trade flat before the data. — news24.com.
Online Reporter