The stock market saw a significant decrease on Friday following the release of the jobs report that provided information about the state of the American economy. Investors were disappointed with the news and some sectors of the market saw significant losses.
The job market suffered a massive shock as the report revealed that the unemployment rate rose to 8.4%, the highest level since the Great Recession, with the addition of over 1.4 million jobs in July. This represented a slower rate of recovery than the prior two months and raised concerns that the economic recovery may be taking longer than initially anticipated.
In response to the report, the Dow Jones Industrial Average fell by as much as 800 points in morning trading and the S&P 500 and NASDAQ Composite indexes dropped by over 5%. Several sectors of the market were hardest hit, with technology companies among the most affected.
Tech stocks saw large losses as the market anticipated how the disappointing news might affect their businesses. Companies like Apple and Microsoft were some of the biggest decliners. Some of the tech companies that were heavily affected saw the stock losses erased by the afternoon, when the market stabilized following a strong US jobs report.
The market is still trying to recover from the shock of the jobs report, but investors are hoping that the upbeat mood of the day will continue as traders look forward to what the future holds.
Inventory marketplace information are living updates: Shares wobble immediately after employment report shocks, Massive Tech effects disappoint Yahoo Finance