Disappointing Jobs Report Sparks Stock Market Selloff

The stock market experienced a significant drop on Friday following a disappointing jobs report. The Dow Jones Industrial Average closed the day down 610 points, or 1.51%, while the S&P 500 and the Nasdaq Composite finished 1.84% and 2.43% lower, respectively.

The U.S. added only 114,000 jobs in July, a figure well below the expected 185,000 and a significant decrease from the 206,000 jobs added in June. Concurrently, the unemployment rate rose from 4.1% to 4.3%.

Adding to the economic concerns, factory orders fell 3.3%, according to the U.S. Commerce Department, marking the largest decline since the onset of the COVID-19 pandemic in April 2020.

Friday's sell-off pushed the Nasdaq index, which represents tech stocks, into correction territory, down more than 10% from an all-time high set just a month ago. The S&P's drop was its biggest since 2022.

Intel led the pullback, with its shares plummeting 29% after announcing weak guidance and layoffs. Amazon also experienced a significant decline, with its shares sliding 12.5% after missing quarterly financial estimates and issuing a disappointing forecast.

This marks the second consecutive day of a major market sell-off, following weaker-than-expected data, including a disappointing manufacturing output report and surprisingly high initial jobless claims.