Investing.com - U.S. stocks plunged on Friday, as investors sold equities and rushed to the safety of the U.S. Treasury after the Bureau of Labor Statistics announced the U.S. economy created a scant 69,000 jobs in May.
The Dow Jones Industrial Average closed down 2.22% on Friday, the S&P 500 index was down 2.46% while the Nasdaq Composite index finished down 2.82%.
The May jobs report served as the chief weather vane Friday.
In the U.S., the Bureau of Labor Statistics reported earlier that the economy added a net 69,000 net nonfarm payrolls in May, far below expectations for a gain of around 150,000.
April and March jobs figures were revised down as well.
The unemployment rate rose to 8.2% from 8.1%.
The jobs data sparked widespread talk the Federal Reserve will consider stimulating the economy via monetary easing to ensure price stability and more optimal employment conditions.
While monetary stimulus tends to send stock prices rising over time, investors sold on sentiment that until the Fed makes easing official and until that excess liquidity finds its way into equities markets, a weak economy means weak earnings.
Tepid manufacturing data sent stocks falling as well.
The Institute for Supply Management reported that its national factory activity index dropped to 53.5 in May from 54.8 in April, just missing expectations for 53.9.
Factory output numbers out of China and Europe have disappointed as well, fueling fears that the global economy is entering a period of synchronized cooling, more serious than running into a soft patch.
Leading Dow Jones Industrial Average gainers included Wal-Mart Stores, down 0.41%, AT&T, down 0.79%, and Exxon Mobil, down 0.90%.
Leading index losers included Hewlett-Packard, down 6.31%, Bank of America, down 4.49%, and American Express, down 4.30%.
European indices, meanwhile, finished down.
After the close of European trade, the EURO STOXX 50 fell 2.37%, France's CAC 40 fell 2.21%, while Germany's DAX 30 finished down 3.42%. Meanwhile, in the U.K. the FTSE 100 closed down 1.14%.
The Dow Jones Industrial Average closed down 2.22% on Friday, the S&P 500 index was down 2.46% while the Nasdaq Composite index finished down 2.82%.
The May jobs report served as the chief weather vane Friday.
In the U.S., the Bureau of Labor Statistics reported earlier that the economy added a net 69,000 net nonfarm payrolls in May, far below expectations for a gain of around 150,000.
April and March jobs figures were revised down as well.
The unemployment rate rose to 8.2% from 8.1%.
The jobs data sparked widespread talk the Federal Reserve will consider stimulating the economy via monetary easing to ensure price stability and more optimal employment conditions.
While monetary stimulus tends to send stock prices rising over time, investors sold on sentiment that until the Fed makes easing official and until that excess liquidity finds its way into equities markets, a weak economy means weak earnings.
Tepid manufacturing data sent stocks falling as well.
The Institute for Supply Management reported that its national factory activity index dropped to 53.5 in May from 54.8 in April, just missing expectations for 53.9.
Factory output numbers out of China and Europe have disappointed as well, fueling fears that the global economy is entering a period of synchronized cooling, more serious than running into a soft patch.
Leading Dow Jones Industrial Average gainers included Wal-Mart Stores, down 0.41%, AT&T, down 0.79%, and Exxon Mobil, down 0.90%.
Leading index losers included Hewlett-Packard, down 6.31%, Bank of America, down 4.49%, and American Express, down 4.30%.
European indices, meanwhile, finished down.
After the close of European trade, the EURO STOXX 50 fell 2.37%, France's CAC 40 fell 2.21%, while Germany's DAX 30 finished down 3.42%. Meanwhile, in the U.K. the FTSE 100 closed down 1.14%.