US Stocks Plunge After Latest Unemployment Data

US stock markets slumped on Friday after a solid US jobs report boosted expectations for more Federal Reserve interest rate hikes.

All three major indices fell sharply, with the Dow Jones Industrial Average losing 2.1 percent at 29,296.

The S&P 500 slumped 2.8 percent to 3,639, while the Nasdaq Composite Index tumbled 3.8 percent to 10,652.

The US economy added 263,000 jobs last month, showing a steady slowdown from the blistering pace in 2020 and 2021, the Labor Department said in the closely-watched report. The unemployment rate slipped two-tenths of a percentage point to 3.5 percent.

Futures markets show investors saw the report as boosting the odds that the Fed will again undertake a 0.75 percentage point interest rate increase in November.

The strong headline jobs figure and drop in unemployment are "driving rates higher and that's having the knock-on effect to the equity markets," said Nick Reece, a portfolio manager at Merk Investments.

Friday's losses also cut into the week's gains, which were won on Monday and Tuesday, with investors betting the Fed could soon pivot from its aggressive measures to counter inflation.

Among individual companies, AMD sank 13.9 percent as the chip company now anticipates a weaker-than-expected $5.6 billion in quarterly revenues due to disappointing personal computer demand. (AFP)