Dow falls after big jobs report miss, tech stock gains limit losses
Summary
The Dow Jones Industrial Average retreated on Friday and the S&P 500 slipped from a record high after the August jobs report came in short of expectations, showing the impact of the delta-fueled Covid resurgence. The report marks a significant slowdown from Julys revised number of 1.053 million and comes as the delta variant of Covid-19 has led to health restrictions being put back in place in some states and cities. "A surprisingly low jobs number this morning clouds the tapering outlook considerably as only 235k jobs were added in August, likely giving the Fed pause and pushing out their plans to announce their bond taper plans," Chris Zaccarelli, chief investment officer for Independent Advisor Alliance, said in a note. The report raises questions about the long-term growth trajectory for the U.S. economy, but the impact of the Fed appeared to be offsetting that in Fridays trading, said Yung-Yu Ma, the chief investment strategist at BMO Wealth Management. The virus variant has been a wild card for the economy, and its impact could be a factor that sways the Fed as it considers the first step away from the easing policies.