The shares fell on Friday, starting Augustova trading, while investors estimated clear signs of economic weakening and the Character’s Characean Rates of the President Donald Trump.
Dow Jones Industrial Average fell for 541 points, ie 1.2%. S & P 500 dropped by 1.6%, while Nasdaq Composite fell by 2.1%.
Employment Report in July showed that the number of employees outside the agricultural sector was increased by 73,000 last month, which is significantly below the consensus of economists, which was surveyed by the increase in the number of employees for 100,000. The previous months are significantly revised down. The growth of the number of jobs in June was only 14,000, with 147,000. The number of Maja employees dropped to 19,000 with 125,000, which signals that the labor market has been weak for a while.
Banking stocks fell sharply due to fear that the slowdown in the economy could affect the growth of the loan. JPMorgan Chase shares fell more than 2%, while Bank of America and Wells Fargo fell for more than 3%. GE Aerospace and Caterpillar fell by 1% and 3%.
“What we see is a concern about the growth that comes at the time when market multipliers became quite high,” said Thierry Wizman, a global foreign exchange rate strategy and interest rates in Macquarie Group. “It is also an indicator of fear of growth in the late summer, but it can be a little complemented by the idea that the pigeons of the FOMC were in the end, which goes in favor of the idea that Fed is late.”
The figures increased the likelihood that the FED could act earlier than expected to reduce the interest rates and support the economy, the idea that helped stop the stock losses, SEEbiz. Traders estimate the likelihood of reducing interest rates in September at approximately 80% after employment data, according to the trading of the CME Fed terms. It is a turn against the Wednesday, when the prospects fell abruptly after the President of the FED Jerome Powell signaled that the central bank should wait and assess the impact of customs duties before reducing.
Trump’s introduction of updated customs customs overnight, which ranged from 10% to 41%, also affected the mood. Goods that are overloaded in an attempt to avoid customs will face another 40% tax, towards the White House.
