Wall Street sinks as recession worries take center stage
Main U.S. indexes tumble; Nasdaq confirms correction
Cons Disc is biggest sector loser; Cons Staples gains ~0.9%
Dollar down ~1%, gold off 0.3%; bitcoin falls >2%; crude off >3%
U.S. 10-Year Treasury yield slides to ~3.80%
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WALL STREET SINKS AS RECESSION WORRIES TAKE CENTER STAGE
U.S. stocks sank on Friday and the Nasdaq confirmed that it was in a correction after disappointing tech earnings and a slowing U.S. economy slammed investor confidence.
The tech-heavy Nasdaq .IXIC ended down 2.4%, leaving it 10% below its record close on July 10.
Amazon AMZN.O closed down nearly 9% after reporting slowing quarterly online sales growth. Market heavyweight Nvidia NVDA.O dropped almost 2%.
"Investors are pulling in the reins on the AI chip trade and artificial intelligence boom. AI is where the growth is and will be, but it needs to be at the right price," said Michael Ashley Schulman, Chief Investment Officer at Running Point Capital.
Expectations of a 50 basis point interest rate cut surged after the Labor Department said non-farm payrolls increased by 114,000 jobs last month. The jobs growth fell well short of the 175,000 expected by economists polled by Reuters, and it fueled worries the U.S. economy could be heading for a recession.
Also the unemployment rate jumped up to 4.3%, near a three-year high.
Intel INTC.O slumped 26% in its weakest one-day performance since 1974 after the chip manufacturer said late Thursday that it suspended its dividend and slashed its workforce to fund a costly turnaround after losing its once-dominant global position.
Worries about Intel, a slowing economy and the future of Wall Street's AI rally knocked 5.2% off of the PHLX chip index .SOX, leaving it down 9.71% for the week, its biggest weekly drop since January 2022.
Here is your final snapshot:
(Noel Randewich)
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FOR FRIDAY'S EARLIER LIVE MARKETS POSTS:
U.S. EQUITIES SINK WITH JOBS, EARNINGS IN FOCUS - CLICK HERE
CHIP STOCKS SLAMMED FOR SECOND DAY AS INTEL CRASHES - CLICK HERE
INDIVIDUAL INVESTOR BEARS THIN OUT, BULLS FATTEN UP - AAII - CLICK HERE
WEAKNESS IN JOBS, EARNINGS REPORTS SENDS STOCKS REELING - CLICK HERE
U.S. STOCK FUTURES, YIELDS, PLUNGE AFTER WEAK PAYROLL DATA - CLICK HERE
WHAT DROVE THE NIKKEI'S 5.8% FRIDAY DROP? - CLICK HERE
ETHER ETFs FAIL TO MATCH INITIAL BITCOIN EUPHORIA - CLICK HERE
EUROPEAN LUXURY AND THE YEN - CLICK HERE
FED EASING BETS RAMP UP AFTER WEAK DATA - CLICK HERE
U.S. RECESSION FEARS AND THE SAHM RULE - CLICK HERE
ALL FALL DOWN - CLICK HERE
A RED DAY - CLICK HERE
MORNING BID: NEW WORRIES OVER GROWTH SPOOK MARKETS - CLICK HERE
Snapshot https://tmsnrt.rs/4fxwnRy
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