Saturday, June 2, 2012

US stocks fall on gloomy economic data

Traders work on the floor of the New York Stock Exchange on June 1, 2012

Source: Press TV

US stocks have fallen over two percent, dragging the Dow Jones Industrial Average into negative territory for the year for the first time.

The stocks sank on Friday after a dismal US jobs report added to concerns that Europe's worsening debt crisis was pulling down the world economy, Reuters reported.

The Standard & Poor 500 fell 32.29 points (2.46 percent) to 1,278.04, its lowest since January, and closed less than its 200-day moving average for the first time in 2012 after the Labor Department said employers only managed to create 69,000 new jobs in May, missing the goal of 158,000 by a wide margin.

The Dow closed down 274.88 points (2.22 percent) at 12,118.57, while the Nasdaq Composite slumped 79.86 (2.82 percent) to 2,747.48.

"It's an ugly day for US stocks, as a disappointingly weak report on May payrolls has thoroughly rattled investors," said Elizabeth Harrow of Schaeffer's Investment Research.

In addition, Bank of America lost 4.5 percent, JPMorgan Chase 3.7 percent, Wells Fargo 5.9 percent, and insurer AIG 6.8 percent.

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