The market closed Friday with all the major market indexes posting steep
losses. The Dow plunged 253.31 points or 2.20% to 11,240.26. The Nasdaq dropped
65.71 points or 2.58% to 2,480.3. The S&P 500 lost 30.45 points or 2.53% to
1,173.97. Stocks dropped on Friday after the Labor Department reported a net
jobs change of zero for the month of August. The report also indicated the
unemployment rate remained unchanged at 9.1%. Economists anticipated the economy
would add 75,000 jobs for the month and the weakness in the labor market has
increased concerns that the economy may be headed toward a recession. Economists
report that the drop in employment should not come as a total surprise since the
month started out on a bad note. August began with a Standard & Poors credit
rating downgrade for the U.S.,then the focus shifted to the heated debate taking
place in Congress over the debt ceiling and throughout it all a highly volatile
stock market fluctuated wildly with the changes in sentiment. Commodities such
as precious metals made considerable gains with the turmoil that evolved. The
plunge in the market on Friday sent many investors seeking the safety of gold
and U.S. treasuries. Gold prices soared 2.6% or $47.80 to $1876.90 an ounce.
Author: Pamela Frost
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