Nasdaq Plummets As Jobs Report Triggers Major Stock Selloff

 All three major indexes fell Friday, as stocks declined following a report indicating the U.S. economy added fewer jobs than expected last month, kindling concerns of a recession.

The Dow fell 610 points (1.5%) as the S&P 500 and Nasdaq dropped 1.8% and 2.4%, respectively, as trading closed.

The Nasdaq entered correction territory after falling more than 10% from its recent high of 18,671.07 set on July 10, ending the index’s worst day since Oct. 24, 2023.

The Cboe Volatility Index—often called Wall Street’s “fear gauge”—increased to as high as 29.66, the highest level for the index since March 2023, indicating increased volatility across all markets over the next 30 days.

A broader market selloff was led by Intel, whose shares plunged 26% for the company’s worst day since 2000 after reporting earnings that missed analyst expectations, while Amazon also had its worst day since 2022 after declining by nearly 9%.

Nvidia (1.7%), Adobe (3.7%), Tesla (4.2%) and Moderna (8%) also recorded notable drops.

Amazon founder Jeff Bezos had $15 billion cut from his net worth Friday as the company’s shares dipped. Other billionaires lost at least $1 billion, including all of the world’s 10 wealthiest people. The estimated net worth of Tesla’s Elon Musk fell by $5.3 billion, Meta’s Mark Zuckerberg dropped by $3.8 billion, LVMH’s Bernard Arnault declined by $3.1 billion and Oracle’s Larry Ellison tumbled by $4.8 billion.

About 114,000 jobs were added to the U.S. economy last month, below expectations of 185,000, as unemployment reached its highest level since 2021. The Labor Department’s report added to increased concerns of a recession, with some analysts suggesting the Federal Reserve failed to cut interest rates in time. Fed Chairman Jerome Powell signaled an interest rate cut would be “on the table” for the agency’s next meeting in September. The Dow, S&P and Nasdaq have each risen to new all-time highs this year, including a multi-day stretch in which the Dow set all-time intraday highs last month. Both the S&P and Nasdaq had their best days since February last week, following a tech rally headed by Nvidia, which added on a single-day record of $329 billion in market capitalization.

Claudia Sahm, chief economist at the financial consulting firm New Century Advisors, told CNBC the U.S. was “not in a recession now,” though “the momentum is in that direction.” Sahm noted a recession is “not inevitable” while there is “substantial scope to reduce interest rates.”