**Stock Market Plummets: Dow Drops 600 Points, Nasdaq Falls into Correction Amid Weak Jobs Report**

 

**Stock Market Plummets: Dow Drops 600 Points, Nasdaq Falls into Correction Amid Weak Jobs Report**

On Friday, the Dow Jones Industrial Average fell by 610.71 points (1.5%), closing at 39,737.26, marking its lowest close since March. This decline was driven by recession fears following a weak jobs report, which showed nonfarm payrolls increasing by only 114,000 jobs in July, significantly below the 175,000 forecasted by economists. The unemployment rate also rose to 4.3%, its highest in nearly three years【8†source】【9†source】.

The Nasdaq Composite also experienced a sharp decline, dropping 417.98 points (2.4%) to 16,776.16, confirming it has entered correction territory, down more than 10% from its recent high. The S&P 500 fell 1.8% to 5,346.56, its lowest level since early June, with both indices suffering their largest two-day declines since March 2023【8†source】.

Several factors contributed to the market downturn. Amazon and Intel reported disappointing quarterly results, with Amazon's stock dropping 8.79% and Intel's plunging 26.06%. The tech sector, in general, faced significant pressure, further weighed down by rising Treasury yields and concerns over expensive valuations amid a weakening economy【8†source】【9†source】.

Investor sentiment was further rattled by the "Sahm Rule," a historically reliable recession indicator triggered by the latest jobs data. This has increased expectations for a 50 basis points rate cut at the Federal Reserve's next meeting in September, up from 22% before the jobs report【8†source】.

Despite the overall market decline, some sectors and companies showed resilience. Apple saw a slight gain of 0.69% due to better-than-expected iPhone sales and optimism around its AI initiatives. Defensive sectors like consumer staples, utilities, and real estate also posted gains【8†source】.

Overall, the recent sell-off reflects growing concerns about an impending recession and the Federal Reserve's potential missteps in managing interest rates. As the market grapples with these uncertainties, investors are cautiously reassessing their positions, with some viewing the downturn as an opportunity to buy stocks at lower prices【9†source】.