Dow tumbles 500 points as continued tech sell-off offsets strong labor-market data
- US stocks traded mixed Friday after the latest US jobs report showed strong job additions and a better-than-expected unemployment rate in August.
- The Dow Jones Industrial Average and the S&P 500 traded higher after the report was released.
- Tech stocks struggled in comparison following a steep decline Thursday that saw the Nasdaq composite slip roughly 5%.
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US stocks slipped Friday as traders weighed a better-than-expected US jobs report against the lingering effects of Thursday's tech-stock rout.
The US added 1.37 million jobs in August, according to the Bureau of Labor Statistics, slightly more than economist expectations. The unemployment rate came in at 8.4%, handily besting consensus forecasts and well below the post-pandemic high of 14.7%.
The strong jobs report did little to quell investor fears stoked after the Nasdaq composite index fell by nearly 5% on Thursday, driven by sharp losses in market mega-caps like Apple, Facebook, and Tesla.
Here's where US indexes stood at 10:45 a.m. ET on Friday:
- S&P 500: 3,362.32, down 2.7%
- Dow Jones Industrial Average: 27,764.47, down 1.9% (528 points)
- Nasdaq composite: 10,903.36, down 4.8%
While the Thursday market sell-off might have put pressure on Washington to ready additional economic stimulus, Friday's jobs report may have slowed that urgency.
Investors continue to size up how long it will take for the economy to recover from the pandemic and how much higher stocks can go. While tech stocks have led the market higher since the pandemic-induced market correction began in February, valuations are beginning to be questioned.
Oil prices slid. West Texas Intermediate crude fell as much as 1.3%, to $40.84 a barrel. Brent crude, the international benchmark, slid 1.2%, to $43.53 a barrel, at intraday lows.