The unemployment rate ticked one-tenth of a percentage point higher to 8.2%, the first increase in nearly a year.
Both the Dow and S&P 500 staged their biggest first-quarter ascents in over a decade; just one month ago, the Dow closed at a 4½-year high.
Blue chips have since fallen nearly 9%, and the Dow industrials closed down 0.8% for the year on Friday. Investors have been on tenterhooks in recent weeks over Greece’s potential exit from the euro zone and the instability of Spanish banks. Worries about Europe have compounded concerns that global economic growth is slowing.
European markets extended declines when the US jobs report came out, with the Stoxx Europe 600 shedding -1.9% to its lowest close of the year. Asian markets lost -1.2% as manufacturing slowed in China and throughout Asia.
Groupon (GRPN) dropped -2.20, as more than 600 million additional shares were released to the public with the end of its stock “lockup period.” Facebook (FB) fell -6.35% after making a rally late Thursday. Verizon Communications (VZ) lost -2.2% after agreeing to acquire Hugh Telematics, a voice and data communications developer.
Finally, the poor jobs report marked a mad dash out of stock and into haven assets. Gold prices shot up 3.7%, to settle at $1,620.50 a troy ounce. The yield on 10-year Treasury notes fell to 1.437% in intraday trading, dropping below 1.5% for the first time ever, ending at 1.467%.
Thomas Doherty is a student at Villanova University majoring in Finance and Economics. All questions and comments can be sent to Thomas@KeeneOnTheMarket.com