US equities plunge on recessionary fears

Sharp sell-off in equities amid rising concerns of US entering recession led major averages end Friday firmly negative. The Nasdaq dove 417.98 points or 2.4 percent to 16,776.16, the S&P 500 plunged 100.12 points or 1.8 percent to 5,346.56 and the Dow tumbled 610.71 points or 1.5 percent to 39,737.26. Reflecting the sell-off seen over the past two days, the major averages also moved sharply lower for the week. The Nasdaq plummeted by 3.4 percent ,while the S&P 500 and the Dow both slumped by 2.1 percent.

Concerns about the outlook for the U.S. economy continued to weigh on Wall Street following the release of a closely watched Labor Department report showing employment increased by much less than expected in the month of July. The report said non-farm payroll employment climbed by 114,000 jobs in July after jumping by a downwardly revised 179,000 jobs in June. The Labor Department also said the unemployment rate rose to 4.3 percent in July from 4.1 percent in June.

US treasuries moved sharply higher, extending the rally seen in the previous session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, plunged 18.4 basis points to a seven-month closing low of 3.792 percent. The dollar index also slipped below 103 mark.

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