Stock market news today: Stock sell-off picks up pace after jobs report shows US labor market losing steam

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Federal Reserve Nouvelles

Labor Market,Jobs Report,Recession Fears

The flight from stocks is accelerating as Big Tech earning misses add to recession jitters in the countdown to the July jobs report.

US stock futures tumbled across the board on Friday as the July jobs report showed more cooling in the labor market, fueling concerns the Federal Reserve's "higher for longer" interest-rate stance might end in recession. Dow Jones Industrial Average futures slumped 1.2%, or around 500 points, as a flight from stocks accelerated. S&P 500 futures sank 1.6%, while Nasdaq 100 futures dropped as much as 2.2% after the jobs report's release.

Those additional signs of a slowdown in the labor market are likely to feed recession fears and rate-cut expectations. Traders are pricing in three rate cuts this year — in September, November, and December — and bets are on a 50 basis-point reduction in September. The yield on the benchmark 10-year Treasury dived further below the 4% level after the labor-market update, trading around 3.84%.

 

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