Major stock indexes fell about 2 percent after the U.S. unemployment rate hit a 26-year high. European markets also dropped following similarly disappointing data on unemployment in the 16 countries that use the euro currency.
As investors sold off stocks amid fresh concerns about the economy, they moved into the safety of bonds, pushing Treasury yields lower.
Recession-weary employers in the U.S. slashed 467,000 jobs in June, the Labor Department reported, far worse than the 363,000 that economists expected and a grim signal that the path to recovery will be bumpy. The jobless rate rose to 9.5 percent from 9.4 percent in May.
The report — one of the most closely watched economic indicators — disappointed investors who had become encouraged by positive signs recently that key areas of the economy including housing and manufacturing were showing modest signs of improvement.
As investors sold off stocks amid fresh concerns about the economy, they moved into the safety of bonds, pushing Treasury yields lower.
Recession-weary employers in the U.S. slashed 467,000 jobs in June, the Labor Department reported, far worse than the 363,000 that economists expected and a grim signal that the path to recovery will be bumpy. The jobless rate rose to 9.5 percent from 9.4 percent in May.
The report — one of the most closely watched economic indicators — disappointed investors who had become encouraged by positive signs recently that key areas of the economy including housing and manufacturing were showing modest signs of improvement.
The Dow Jones industrial average fell 223.32, or 2.63 percent, to 8,280.74. The Standard & Poor's 500 index declined 26.91, or 2.91 percent, to 896.40, while the Nasdaq composite index fell 49.20, or 2.67 percent, to 1,796.52.
Volume came to a relatively low 357.7 million shares ahead of the holiday weekend, compared with 432.4 million shares traded at the same point Wednesday. Markets will be closed Friday in observance of the Independence Day holiday.
Light volume can lead to more volatile swings in trading.
An upbeat report about May factory orders was not enough to boost traders' confidence amid the weak employment numbers. The Commerce Department said total orders rose 1.2 percent in May, better than the 0.8 percent increase that economists had expected.
Light volume can lead to more volatile swings in trading.
An upbeat report about May factory orders was not enough to boost traders' confidence amid the weak employment numbers. The Commerce Department said total orders rose 1.2 percent in May, better than the 0.8 percent increase that economists had expected.
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