With traders reacting negatively to a disappointing monthly employment report, stocks are seeing considerable weakness on Friday. The selling pressure comes as the weak jobs data has added to recent concerns about the overall economic outlook.
After bouncing off their early lows, the major averages have moved back to the downside in recent trading but remain off their worst levels.
The Dow is currently down 78.14 points or 0.6 percent at 12,170.41, the Nasdaq is down 21.04 points or 0.8 percent at 2,752.27 and the S&P 500 is down 7.90 points or 0.6 percent at 1,305.04.
Before the start of trading, the Labor Department released a report showing much weaker than expected job growth in the month of May as well as an unexpected uptick in the unemployment rate.
The Labor Department said that the U.S. economy added just 54,000 jobs in May, far lower than the 170,000 predicted by most economists and well short of the gains averaging 220,000 over the previous three months.
Additionally, the report showed that the unemployment rate unexpectedly edged up to 9.1 percent in May from 9.0 percent in April.
While much of the recent economic data suggested that the job numbers were likely to come in below economist estimates, the report still generated considerable selling pressure amid a lack of other major catalysts on the day.
At the same time, the selling pressure was moderated to some extent by the release a report from the Institute for Supply Management showing an acceleration in the pace of growth in the service sector.
The ISM said its non-manufacturing index, which tracks activity in the service sector, rose to 54.6 in May from 52.8 in April, with a reading above 50 indicating growth in the sector. Economists had been expecting the index to rise to a reading of 54.0.
Sector News
Transportation stocks continue to turn in some of the market's worst performances, resulting in a 1.3 percent loss by the Dow Jones Transportation Average. Earlier in the session, the average hit its lowest intraday level in well over a month.
Within the sector, railroad and trucking stocks are posting notable losses, dragging the Dow Jones Railroads Index and the Dow Jones Trucking Index down by 1.4 percent and 1.3 percent, respectively.
Considerable weakness is also visible among healthcare provider stocks, as reflected by the 1.2 percent loss currently being shown by the Morgan Stanley Healthcare Provider Index. The index hit its worst intraday level in over a month earlier in the session.
A vast majority of the other major sectors are also seeing weakness on the day, although most have regained some ground following the initial sell-off. Nonetheless, telecom, tobacco, and housing stocks continue to post notable losses.
Other Markets
In overseas trading, stock markets in the Asia-Pacific region turned in a mixed performance on Friday amid uncertainty about the U.S. jobs report. Japan's Nikkei 225 Index fell by 0.7 percent, while China's Shanghai Composite Index advanced by 0.9 percent.
Meanwhile, the major European markets saw notable volatility over the course of the trading day. The German DAX Index eventually ended the session up by 0.5 percent, while the U.K.'s FTSE 100 Index and the French CAC 40 Index ended the day nearly flat.
In the bond market, treasuries have given back some ground but continue to see strength on the day. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 3.9 basis points at 2.991 percent after hitting a nearly six-month intraday low of 2.948 percent.
For comments and feedback contact: editorial@rttnews.com
May 08, 2026 15:50 ET Manufacturing and services sector survey results and labor market data from main economies were the highlight on the economics news front this week. Factory orders and jobs report dominated the news flow in the U.S. Similarly, industrial production data from German garnered attention in Europe. In Asia, purchasing managers’ survey results from China and the central bank decision from Australia were in focus.