US stocks tumbled on Friday after a jobs report stoked new fears that the economy could be headed for a recession.
The Dow Jones Industrial Average fell more than 900 points in morning trading. The S&P 500 fell 2.37 per cent, while the Nasdaq Composite fell by 3.14 per cent, putting it in correction territory as it has lost 10 per cent from its recent record high.
The price of gold, generally considered a safe haven asset, rose 1.30 per cent to $2,513.00 per ounce.
The sell-off came as the US Labour Department reported a softening employment market, with the US economy adding 114,000 jobs last month, down from 179,000 in June and well below economists' expectations of 185,000. Meanwhile, the unemployment rate unexpectedly ticked up to 4.3 per cent, its highest level since October 2021.
“Job creation in the US fell short of expectations for the first time in months, signalling a potential slowing of economic growth,” Mahmoud Alkudsi, senior market analyst at ADSS, wrote in a note to clients.
The latest unemployment rate triggered the so-called Sahm Rule indicator, which says that a recession is nearly under way if the three-month average unemployment rate increases by half a percentage point from its low point in the past 12 months.
“The significant rise in job losers over the past year underscores genuine weakening in labour market conditions that are quickly raising the risk of recession,” Wells Fargo economists Sarah House and Michael Pugliese wrote.
Asked about the Sahm rule on Wednesday, Federal Reserve Chair Jerome Powell called it a “statistical regularity”.
“It's not like an economic rule where it's telling you something must happen,” he said.
“What we think we're seeing is a normalising labour market and we're watching carefully to see if it turns out to be more, it starts to show signs that it's more than that, then we're well-positioned to respond.”
The Fed on Wednesday left its target range for interest rates unchanged at 5.25 per cent to 5.50 per cent. In his post-meeting news conference, Mr Powell telegraphed a likely September rate cut and suggested not all members of the policy setting Federal Open Market Committee wanted to keep rates steady.
“There was a real discussion back and forth of what the case would be for moving at this meeting. A strong majority supported … not moving at this meeting,” he said.
Markets have all but locked in a September rate cut, with 62.5 per cent of traders anticipating the Fed will cut rates by 50 basis points, according to the CME FedWatch tool.
"We don’t think conditions are at the point yet where the FOMC would cut by 50 basis points. However, this very clearly increases concerns about the possibility that there might be more severe weakening to come, in which case, the FOMC wouldn’t hesitate to accelerate cuts," LHMeyer, an independent research advisory service, said in a note on Friday.
"With inflation having come down so much, the FOMC now has much greater latitude to defend its employment goal, if needed, as it confirmed in its recent post-meeting communications."
But there are concerns that the Fed could hold interest rates steady for too long, threatening its hopes of achieving a so-called soft landing. By raising rates to their current level, the US central bank has sought to tame inflation without driving the economy into a recession or ramping up the unemployment rate.
“I would not like to see material further cooling in the labour market,” Mr Powell said.
Friday's losses followed a Thursday session in which the Dow and S&P 500 each fell more than 1 per cent after a weak ISM manufacturing report sparked fears the Federal Reserve may be late in cutting interest rates.
The years Ramadan fell in May
Mohammed bin Zayed Majlis
Company%20profile%20
%3Cp%3E%3Cstrong%3EName%3A%20%3C%2Fstrong%3EElggo%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%20August%202022%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Luma%20Makari%20and%20Mirna%20Mneimneh%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%2C%20UAE%3Cbr%3E%3Cstrong%3ESector%3A%3C%2Fstrong%3E%20Education%20technology%20%2F%20health%20technology%3Cbr%3E%3Cstrong%3ESize%3A%3C%2Fstrong%3E%20Four%20employees%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%3C%2Fstrong%3E%20Pre-seed%3C%2Fp%3E%0A
Killing of Qassem Suleimani
The specs
Engine: 4.0-litre flat-six
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%20Mozn%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202017%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Mohammed%20Alhussein%2C%20Khaled%20Al%20Ghoneim%2C%20Abdullah%20Alsaeed%20and%20Malik%20Alyousef%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Riyadh%2C%20Saudi%20Arabia%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20FinTech%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EFunding%3A%3C%2Fstrong%3E%20%2410%20million%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Raed%20Ventures%2C%20Shorooq%20Partners%2C%20VentureSouq%2C%20Sukna%20Ventures%20and%20others%3C%2Fp%3E%0A
Electric scooters: some rules to remember
- Riders must be 14-years-old or over
- Wear a protective helmet
- Park the electric scooter in designated parking lots (if any)
- Do not leave electric scooter in locations that obstruct traffic or pedestrians
- Solo riders only, no passengers allowed
- Do not drive outside designated lanes
Zayed Sustainability Prize
Zayed Sustainability Prize
Killing of Qassem Suleimani
Health Valley
Founded in 2002 and set up as a foundation in 2006, Health Valley has been an innovation in healthcare for more than 10 years in Nijmegen, the Netherlands.
It serves as a place where companies, businesses, universities, healthcare providers and government agencies can collaborate, offering a platform where they can connect and work together on healthcare innovation.
Its partners work on technological innovation, new forms of diagnostics and other methods to make a difference in healthcare.
Its agency consists of eight people, four innovation managers and office managers, two communication advisers and one director. It gives innovation support to businesses and other parties in its network like a broker, connecting people with the right organisation to help them further
WHAT IS A BLACK HOLE?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
More on animal trafficking
THE BIO
Bio Box
Role Model: Sheikh Zayed, God bless his soul
Favorite book: Zayed Biography of the leader
Favorite quote: To be or not to be, that is the question, from William Shakespeare's Hamlet
Favorite food: seafood
Favorite place to travel: Lebanon
Favorite movie: Braveheart
More from Neighbourhood Watch:
The five pillars of Islam
KILLING OF QASSEM SULEIMANI
MORE ON INTERNATIONAL JUSTICE
THE BIO
Ms Davison came to Dubai from Kerala after her marriage in 1996 when she was 21-years-old
Since 2001, Ms Davison has worked at many affordable schools such as Our Own English High School in Sharjah, and The Apple International School and Amled School in Dubai
Favourite Book: The Alchemist
Favourite quote: Failing to prepare is preparing to fail
Favourite place to Travel to: Vienna
Favourite cuisine: Italian food
Favourite Movie : Scent of a Woman
More from Neighbourhood Watch
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
Read part one: how cars came to the UAE
Read more about the coronavirus
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
UAE Premiership
Results
Dubai Exiles 24-28 Jebel Ali Dragons
Abu Dhabi Harlequins 43-27 Dubai Hurricanes
Fixture
Friday, March 29, Abu Dhabi Harlequins v Jebel Ali Dragons, The Sevens, Dubai
The five pillars of Islam
SPECS
%3Cp%3E%3Cstrong%3EEngine%3C%2Fstrong%3E%3A%202-litre%20direct%20injection%20turbo%20%0D%3Cbr%3E%3Cstrong%3ETransmission%3C%2Fstrong%3E%3A%207-speed%20automatic%20%0D%3Cbr%3E%3Cstrong%3EPower%3C%2Fstrong%3E%3A%20261hp%20%0D%3Cbr%3E%3Cstrong%3ETorque%3C%2Fstrong%3E%3A%20400Nm%20%0D%3Cbr%3E%3Cstrong%3EPrice%3C%2Fstrong%3E%3A%20From%20Dh134%2C999%26nbsp%3B%3C%2Fp%3E%0A
GOLF’S RAHMBO
- 5 wins in 22 months as pro
- Three wins in past 10 starts
- 45 pro starts worldwide: 5 wins, 17 top 5s
- Ranked 551th in world on debut, now No 4 (was No 2 earlier this year)
- 5th player in last 30 years to win 3 European Tour and 2 PGA Tour titles before age 24 (Woods, Garcia, McIlroy, Spieth)
