The US stock market experienced a sharp drop on Friday, with major indices closing significantly lower. The S&P 500 fell 1.84%, the Nasdaq sank 2.43%, and the Dow Jones plunged nearly 610.71 points (-1.51%). The downturn was primarily driven by a weaker-than-expected jobs report, which raised concerns about a slowing economy. For the week, the S&P 500 and Dow both fell 2.1%, while the Nasdaq decreased 3.4%. Meanwhile, the dollar index fell below 103.7, reaching its lowest point in more than four months. The Bank of Japan’s rate hike exerted additional downward pressure on the greenback. 

Corporate earnings results were mixed, contributing to the market’s volatility. Amazon’s (AMZN.US) shares fell by 8.78% after missing revenue forecasts and issuing a disappointing outlook. Intel (INTC.US) experienced a dramatic 26.06% plunge following poor quarterly results. Other tech companies also saw declines, with Nvidia (NVDA.US) down 1.78%, Broadcom (AVGO.US) dropping 2.18%, and Microchip Technology (MCHP.US) falling 10.6%. In contrast, Apple’s (AAPL.US) shares rose 0.69% after beating earnings expectations, despite declining iPhone revenue. 

(S&P 500 Index Six-month Chart) 

(Dollar Index Six-month Chart) 

The jobs report revealed that the US economy added a net 114,000 jobs in July, well below market expectations of a 175,000 increase. Additionally, the unemployment rate unexpectedly jumped to a 2021-high of 4.3%, and wage growth slowed more than anticipated. These factors led markets to price in 100 basis points in rate cuts by the Federal Reserve this year, including a 50 basis point cut and two 25 basis point cuts in the three remaining decisions of the year. 

Disclaimer  

Comments, news, research, analysis, price, and all information contained in the article only serve as general information for readers and do not suggest any advice. Ultima Markets has taken reasonable measures to provide up-to-date information, but cannot guarantee accuracy, and may modify without notice. Ultima Markets will not be responsible for any loss incurred due to the application of the information provided. 

Willy

Willly is a skilled and experienced market analyst who has been analyzing financial markets for over 5 years. He currently serves as a Market Analyst at Ultima Markets, a leading financial services company. Willy brings a wealth of expertise in fundamental and technical analysis, having previously worked as Head of Financial Market Analyst at GCMAsia. There, he oversaw the research department and developed educational materials to build clients' financial knowledge. He also collaborated cross-functionally to amplify sales and achieve business goals. Prior to that role, Willy gained valuable experience as a Financial Market Analyst at the same company. He generated daily and weekly reports, conducted market briefings, and provided trading strategies through webinars. Read his latest market analyses on the Ultima Markets News & Analysis.

See Full Bio