Press Association
Thursday 11th March 2010
A gloomy report on job losses in June sent stocks sharply lower on Wall Street.
Major stock indexes declined more than 2.6% after government figures showed the US unemployment rate had hit a 26-year high.
The Dow Jones industrial average fell 223.32, or 2.6%, to close on Thursday at 8,280.74, the lowest close since May 22. It was the index's worst day since April 20.
The Standard & Poor's 500 index fell 26.91, or 2.9%, to 896.42, while the Nasdaq composite index fell 49.20, or 2.7%, to 1,796.52.
Trading on the New York Stock Exchange was extended in order to execute customer orders impacted by system irregularities.
As investors sold off stocks amid fresh concerns about the economy, they moved into the safety of bonds, pushing Treasury yields lower.
Recession-weary employers in the US slashed 467,000 jobs in June, the Labour Department reported.
This was far worse than the 363,000 that economists expected and a grim signal that the path to recovery will be bumpy. The jobless rate rose to 9.5% from 9.4% in May to threaten the market's recent rally.
"There's more and more evidence mounting against this rally continuing," said Doug De Groote, a managing director at United Wealth Management. Consumers are likely to lead the nation out of the ongoing recession, but that will not happen if more people are losing their jobs, he warned.
