Zero job growth sparks US bonds, gold rally
Paralysis in the US jobs market reinforced fears of recession on Friday, driving investors out of stocks and into the safety of bonds, gold and the Swiss franc.
Stocks on Wall Street and other major exchanges closed down more than 2 percent after the US Labor Department said employers added no net new jobs last month and July's total was revised lower.
The Dow Jones industrial average closed down 253.31 points, or 2.20 percent, at 11,240.26. The Standard & Poor's 500 Index was down 30.45 points, or 2.53 percent, at 1,173.97. The Nasdaq Composite Index was down 66.71 points, or 2.58 percent, at 2,480.33.
European stocks tumbled, ending a four-day rally, after data showed US employment growth ground to a halt in August, rekindling fears that the world's largest economy is slipping into recession.
The FTSEurofirst 300 index of top European shares ended 2.5 percent lower at 948.62 points, while German Bund futures rallied to record highs.
Japan's Nikkei stock average fell, slipping back below the 9,000 level as profit-taking emerged after six straight days of gains and ahead of a key US jobs report, while machinery stocks lost ground after weak capital spending data.The Nikkei fell 1.2 percent to 8,950.74 after closing above 9,000 yesterday for the first time in two weeks.
For the week, it rose 1.7 percent.
The broader Topix index dropped 1.1 percent to 769.78.
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