Jitters Felt on Wall Street After Obama’s Zero Jobs Report
Source: Yahoo! News
NEW YORK (Reuters) – Wall Street stocks dropped on Friday, with major indexes falling as much as 2 percent as Labor Department data showed jobs growth flatlined in August, intensifying worries the economy is staggering.
Financial, manufacturer and energy stocks suffered the biggest losses as declining issues far outweighed winners.
Nonfarm payrolls generated no new jobs last month as sagging consumer confidence discouraged already skittish businesses from hiring, keeping pressure on the U.S. Federal Reserve to provide more monetary stimulus to the economy.
“In a nutshell, this is the great goose egg economy, a big zero, a big nothing, and this better be one hell of a speech next week,” Sal Arnuk, co-manager of trading at Themis Trading in Chatham, New Jersey.
U.S. President Barack Obama, in a speech set for September 8, will unveil a jobs program he hopes will provide “meaningful” tax relief and help the nation’s long-term unemployed, a top aide told Reuters Insider.
“What the market is looking for this time, realizing that unemployment is a barrier, and until the federal government wakes up and realizes what the restraints are and designs a program attacking restraints, it’s not going to make much progress,” said Fred Dickson, chief market strategist at D.A. Davidson & Co in Lake Oswego, Oregon.