Jobs report sends stocks tumbling. What does it mean for investors?

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The S&P 500 was on pace for its worst trading day in about two years.

In early trading, the S&P 500 was on pace for its worst trading day in about two years. The Dow Jones Industrial Average had fallen nearly 800 points, or about 2%. The tech-heavy Nasdaq had fared even worse, dropping more than 2%.

The selloff is concerning since it's rooted in a labor market cooldown that may signal a wider economic downturn, investors told ABC News. However, the solid state of the economy may very well allow it to weather the difficulty and send stocks back toward gains.," Adam Turnquist, chief technical strategist at LPL Financial, told ABC News, ruling out the possibility of an outcome in which a stock index has dropped 20% below its most recent high.

Employers hired 114,000 workers last month, falling well short of economist expectations of 185,000 jobs,data showed. The unemployment rate climbed to 4.3%, the highest level since October 2021. "Stock market volatility is very normal, and we believe the economy is still on a sound footing," Bellin added.

An interest rate cut would ease borrowing costs for consumers and businesses alike, which may rekindle economic activity and boost hiring.

 

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