Dow Jones plunges on shock payroll data
The Dow Jones fell by as much as 200 points whilst gold rose above the $700 on surprise data showing that the US economy shed jobs for the first time in four years in August.
The US economy shed jobs last month for the first time in four years, statistics out today revealed. According to Labour Department figures, non-farm payrolls were down 4,000, nothing like the 115,000 increase predicted by Wall Street economists.
The data renewed concerns that the US could slide into recession and galvanised expectations of an interest rate cut later this month.
The Dow Jones opened sharply lower, and fell by as much as 200 points to as low as 13,160. The S&P 500 and Nasdaq composite were also lower.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
In London, stocks fell sharply on the news from across the Atlantic. The benchmark FTSE 100 index was down by as much as 56 points at 6,256 at 2pm. The slump was echoed across Europe, with the French CAC-40 down 2% whilst the German DAX-30 lost 1.7%.
Elsewhere in the market, bond prices rose on a flight to quality. The yield (which moves inversely to price) on the 10-year Treasury dipped from 4.51% to 4.42%.
Recession fears saw the dollar fall to a one-month low of 1.3771 against the euro and as low as 113.58 against the yen.
And safe-haven gold soared as high as $704.60 today, whilst fellow precious metal silver rose to $12.64 an ounce.
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
What is the 25x retirement rule and does it work?
The 25x retirement rule has been around for decades but many experts question if it is a suitable strategy
-
When is the self-assessment tax return deadline?
If you are self-employed, rent out a property or earn income from savings or investments, you may need to complete a self-assessment tax return. We run through the deadlines you need to know about