Data provided by iNet BFA
Loading...
See More

Stocks, oil plunge as US jobs report shocks

Jun 03 2011 16:58 Reuters

Related Articles

Global markets tread water

Stocks, oil fall as US data drives worries

Markets sink on US growth worries

Equities down but not out

US stocks plunge on glum data

Stocks slip before US jobs data

 

New York - Global stocks and oil prices slid on Friday after US jobs growth for May fell shockingly below market expectations, heightening worry that the world's top economy was headed for a protracted slowdown.

The dollar tumbled against the yen and Swiss franc, traditionally seen as the currency market's safe havens. US Treasuries prices shot up - pushing yields back to December lows - as goverment data showed the United States added the smallest number of jobs since September.

Wall Street's benchmark S&P 500 index slumped 1% to a six-week low in response to the monthly employment report, the latest in a batch downbeat data issued over the past few weeks.

"This highly disappointing report is a real shocker," said Mohamed El-Erian, co-chief investment officer at Pimco, the largest US bond manager, in Newport Beach. California.

"It confirms that America has an unemployment crisis that involves worrisome economic, political and social dimensions. It is hard to find any silver lining in today's worrisome report. It speaks to a large unemployment problem that is becoming increasingly structural, and therefore protracted, in nature."

Global stocks, measured by MSCI's world equity index, fell 0.2%. European shares slid almost 1%.

Oil prices plunged about 2% in both New York and London on worries that any further erosion of the US labor market could hit consumer spending, leading to lower fuel use.

The Labor Department said the US jobless rate rose to 9.1% in May as high energy prices and the effects of Japan's earthquake bogged down the economy.

The closely watched nonfarm payrolls increased 54 000 last month. Private employment rose 83 000, the smallest amount since June, while government payrolls dropped 29 000.

Economists polled by Reuters had expected payrolls to rise 150 000 and private hiring to increase 175 000 in May. The government revised employment figures for March and April to show 39 000 fewer jobs created than previously estimated.

The Dow Jones industrial average was down 113.71 points, or 0.93%, at 12 134.84. The Standard & Poor's 500 Index was down 12.70 points, or 0.97%, at 1 300.24. The Nasdaq Composite Index was down 32.46 points, or 1.17%, at 2 740.85.

The benchmark 10-year US Treasury note was up 20/32, with the yield at 2.9587%.

Ten -year Treasury yields fell below 3% this week, the first time since December, as investors became wary about the near-term economic outlook.

wall street  |  commodities  |  markets  |  currencies
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

A cash flow crunch often occurs in small businesses trying to balance cash coming in with cash going out. Watch this video to help you improve.
 
 

Disregard of interest rate impact deplored

A Fin24 user protests what he sees as disregard of the broader impact of increased interest rates on those who cannot yet say "bring it on" with a smile.

 
 

Start saving...

No need to keep up with the Joneses
Where can you stash your cash?
Time the key for retirement saving
Dummy's guide to saving

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...