Stock markets in the U.S. experience significant declines following disappointing employment figures
In a surprising turn of events, the U.S. stock markets experienced significant losses on Friday, affecting all major indices. The Dow Jones Industrial Average closed at 43,589 points, marking a 1.2% decrease from the previous trading day. Similarly, the S&P 500 closed at around 6,238 points, down approximately 1.6% from the previous day. The Nasdaq 100 also saw a 2.0% drop, closing at around 22,763 points.
The losses in the stock markets were triggered by a disappointing jobs report. The U.S. jobs report for July showed a creation of only 73,000 jobs, significantly fewer than expected. The numbers for May and June were also significantly revised downwards.
The weaker economy has increased the chances of President Trump's wish for the Federal Reserve to further lower interest rates. However, the Federal Reserve's dual mandate calls for both stable low inflation and maximum employment. The disappointing U.S. jobs report raised concerns about the economic outlook in the United States.
The losses in U.S. stock markets also had a ripple effect on other markets. Oil prices fell due to the losses in U.S. stock markets, with Brent crude oil prices falling sharply, with a barrel costing $69.60 (-2.9%). Gold, on the other hand, gained value due to the losses in U.S. stock markets and the pressure on the U.S. dollar. Gold prices per gram increased by $93.27, and an ounce of gold traded at $3,360 (+2.1%).
The U.S. dollar came under pressure due to the losses in U.S. stock markets. One dollar was worth 0.8635 euros, weakening against the euro. In contrast, the euro strengthened against the U.S. dollar, with one euro worth 1.1581 U.S. dollars.
It is worth noting that President Trump fired the head of the relevant statistics office in response to the jobs report. However, the specific individual's name is not given in the provided search results.
Despite these challenges, the economic outlook in the United States remains uncertain. The disappointing jobs report has raised concerns about the future of the U.S. economy, and investors will be closely watching developments in the coming weeks.
