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Hiring slowdown sends stock market reeling
NEW YORK—Stocks plunged Friday after the government reported that hiring slowed sharply last month. The report confirmed investors’ fears that the US economic recovery may be faltering. The losses in the market were widespread. The Dow Jones industrial average lost 168 points and the Nasdaq composite had its worst day since November 9. Both the Nasdaq and the Standard & Poor’s 500 index closed out their worst weeks of the year. The Dow had its second-worst.
The dollar and US Treasury prices rose as investors dumped risky assets and moved money into lower-risk investments. Energy stocks were among the hardest hit after the price of oil fell below $100 a barrel for the first time since February. Only one of the ten industry groups in the S&P 500 rose, utilities, which investors tend to buy when they’re nervous about the economy.
“The jobs numbers were a disappointment,” said Phil Orlando, chief equity strategist at Federated Investors. It was the third straight daily loss for the Dow, but it’s too early to know if it’s the start of a correction in the market. Even after its 1.4 per cent decline this week, the Dow is still up 6.7 per cent this year.
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