Markets End Sharply Lower After Weak Jobs Report

The US economy added just 114,000 jobs in July, significantly below predictions, the Bureau of Labor Statistics (BLS) reported, according to Alicia Wallace and Elisabeth Buchwald of CNN.

US markets reacted sharply to the weak jobs report, with the Dow closing 612 points, the Nasdaq Composite falling by 2.43%, and the S&P 500 dropping to 1.84%.

This disappointing figure highlights concerns that the job market is slowing too quickly, which could potentially trigger a recession. Economists had anticipated slower monthly growth, projecting around 175,000 jobs added and an unemployment rate holding steady at 4.1%.

Federal Reserve Chair Jerome Powell noted on Wednesday that the central bank is closely monitoring the labor market, and Fed officials are prepared to cut rates if growth declines sharply.

US markets reacted sharply to the weak jobs report, with the Dow closing 612 points lower after plunging by as much as 900 points earlier in the day. The Nasdaq Composite ended the day in correction territory, falling 2.43% by market close.

The S&P 500 also dropped, closing down 1.84%.

Sam Stovall, chief investment strategist at CFRA Research, commented that the market may have been "setting itself up for disappointment" with its heavy reliance on tech stocks, and he views the selloff as a "normal corrective process," as reported by Bryan Mena and Krystal Hur of CNN.