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Stocks Plunge Again on Weak August Jobs Report

Published by: Mike Goldman on 4th Sep 2015 | View all blogs by Mike Goldman

Stocks Plunge Again on Weak August Jobs Report

US stocks plummeted during Friday's session in response to the August jobs report, which showed the nation's lowest unemployment rate since the onset of the Great Recession but also showed less jobs created than economists were expecting. The Dow Jones lost nearly 300 points in the first half of the trading day, and all three major indexes had lost well over 1 percent as investors reacted to the mixed report. Despite the smaller-than-expected job creation number, investors are concerned that the drop in joblessness will convince the Federal Reserve to boost interest rates.

According to the Labor Department's report, nonfarm employers created 173,000 jobs last month. The figure isstunningly low when you consider a group of economists in a recent Reuters poll projected a total of 220,000, on average. So, despite the unemployment rate hitting a seven-year low, there is still some concern that the job market isn't fully recovered yet. The development is even more confusing when you look back at previous August jobs reports, many of which have been revised upwards the following month to reflect seasonal fluctuations.

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