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US markets plunge on dismal jobs data

02 Jun 2012 Evaluate

US markets suffered sharp plunge on the last trading day of the week and all the major indices closed lower by over 2 percent on getting gloomy US jobs report and signs of a global economic slowdown. Labor Department reported that the US economy created only 69,000 jobs in May, the lowest in a year, as the nation’s unemployment rate rose to 8.2 percent from 8.1 percent in April -- the first increase in 11 months. Not only this, the government also said the economy created much lesser jobs in the previous two months than earlier estimated, revising numbers down to show 49,000 fewer jobs created. The economic report from the Europe too came weak and weighed on the sentiments, data from the euro zone showed unemployment in the region was 11 percent in April, the highest level since 1995.

The Dow Jones Industrial Average lost 274.88 points, or 2.22 percent, to close at 12,118.57, its biggest one-day point drop of the year. The S&P 500 dropped 32.29 points, or 2.46 percent, to finish at 1278.04, while the Nasdaq was down by 79.86 points, or 2.82 percent, to settle at 2747.48.

The Indian ADRs closed mostly in red, HDFC Bank was down by 0.40%, ICICI Bank was down by 0.16%, Wipro was down by 0.22%, Tata Motors was down by 0.68% and MTNL was down by 0.02%.

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MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

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