Stocks fell sharply on Friday, finishing the first week of the third quarter on a sour note, as investors were spooked by a fresh wave of corporate earnings warnings and a US jobs report showing the economy was still struggling last month.
Technology stocks slumped after companies including EMC and microchip maker Advanced Micro Devices warned of disappointing results that will miss forecasts. The two added their names to the growing list of companies saying they will takea hit in the slowing economy.
The technology-laced Nasdaq Composite Index closed with a loss of 75.95 points, or 3.65 per cent, at 2,004.16, according to the latest available data. More than two stocks fell for every gainer on Nasdaq. The blue chip Dow Jones industrial average tumbled 227.18 points, or 2.17 per cent, to 10,252.68, its lowest level in almost three months, and the broader Standard & Poor's 500 Index fell 28.65 points, or 2.35 per cent, to 1,190.59. For the week, the S&P was down 2.7 per cent, while the Dow was off 2.4 per cent and Nasdaq shed 7.2 per cent.
The latest economic data did little to boost investors' mood. Although the unemployment rate ticked up only modestly, the US economy lost jobs at a much faster-than-expected pace in June, dampening hopes for a rapid economic recovery.
