Extending losses for second straight session, the US markets ended lower on Friday on worries about runaway inflation spurred by the sudden jump in US Treasury bond yields. Dow Jones Industrial witnessed its biggest one-day percentage drop since August, while both the S&P and the Nasdaq logged the biggest daily drop since late June. Besides, the Labor Department report showed weaker than expected job growth in September, the jump in employment in August was upwardly revised and the unemployment rate fell to its lowest level since 1969. The Labor Department said non-farm payroll employment climbed by 134,000 jobs in September, while street had expected an increase of about 185,000 jobs.
However, the report also showed a significant upward revision to the pace of job growth in August, with employment spiking by 270,000 jobs compared to the originally reported jump of 201,000 jobs. As per the data, the unemployment rate fell to 3.7% in September from 3.9% in August. The unemployment rate had been expected to edge down to 3.8%. With the bigger than expected decrease, the unemployment rate fell to its lowest level since hitting 3.5% in December of 1969. Average hourly employee earnings rose by $0.08 or 0.3% to $27.24 in September, reflecting a year-over-year increase of 2.8%. A separate report from the Commerce Department showed that the US trade deficit widened in August, reflecting an increase in imports and a decrease in exports. The Commerce Department said the trade deficit widened to $53.2 billion in August from a revised $50.0 billion in July. Street had expected the trade deficit to widen to $53.5 billion.
Dow Jones Industrial Average declined 180.43 points or 0.68 percent to 26,447.05, Nasdaq slipped 91.06 points or 1.16 percent to 7,788.45 and the S&P 500 was down by 16.04 points or 0.55 percent to 2,885.57.