Stocks Slump After Jobs Report
U.S. stocks tumbled in the early trading on Friday after a report on U.S. jobs growth showed tepid, below-forecast growth last month. The Dow Jones Industrial Average lately fell 136.95 points, or 1.06%, to 12,759.72. The S&P 500 fell 12.21 points, or 0.89%, to 1,355.37. The Nasdaq Composite lost 33.23 points, or 1.12%, to 2,942.89.
The U.S. created just 80,000 jobs in June as hiring slowed dramatically in the second quarter, confirming that the economy has hit another rough patch. The unemployment rate was unchanged at 8.2%, the Labor Department said Friday.
Oil fell below $99 a barrel on Friday as concern spread over the health of the U.S. economy and investors expected the Norwegian government to end an oil workers’ strike. Brent dropped $1.95 to $98.75 by 1347 GMT, while U.S. crude was down $2.46 at $84.76.
Gold prices extended losses Friday after the U.S. employment report fell short of analysts’s expectations and pointed to a slowdown in the labor market. Gold for August delivery fell $21.90, or 1.4%, to $1,587.60 an ounce on the Comex division of the New York Mercantile Exchange.
The yield on Spanish 10-year bonds briefly jumped back above 7% on Friday before edging back, a sign that investors aren’t convinced the “breakthrough” agreement struck by EU leaders will stabilize the euro debt crisis.