The declines left Wall Street lower for the sixth week out associated with seven as declining issues far outweighed winners on a light-volume day in front of the long US Labour Day holiday weekend.
Stocks had rebounded recently on expectations the Federal Reserve would introduce new stimulus to enhance the sluggish economy. But the Labor Department's latest report underscores that action through the Fed alone cannot address the economy's deep problems.
"By itself the Given can't restore confidence or create jobs, so any steps it might take defintely won't be game-changing for the economic growth prospects, " said Leo Grohowski, chief investment officer at BNY Mellon Wealth Management in Ny, where he oversees about $171 billion in client assets.
Bank shares were again one of the day's biggest losers, with Bank of America Corp tumbling 8. 3% in order to $7. 25, making it the top decliner on the Dow, where just about all 30 components fell. JPMorgan Chase & Co fell 4. 6% to $34. 63 and also the KBW banks index lost 4. 5%.
A US housing regulator filed case against Bank of America Corp, JPMorgan Chase & Co, Goldman Sachs Group Inc along with other big lenders over mortgage practices that led to losses at government-owned Fannie Mae as well as Freddie Mac.
There was no growth in nonfarm jobs in August because sagging consumer confidence discouraged already skittish businesses from hiring, keeping pressure about the Federal Reserve to provide more monetary stimulus to the economy.
US Leader Barack Obama, in a speech set for Thursday, will unveil a jobs program he hopes will give you "meaningful" tax relief and help the nation's long-term unemployed, a top assist told Reuters Insider.
"The likelihood of more stimulus has increased dramatically due to this and some other recent data, but at this point it's unclear just how much that will really help markets, " said Derek Hoyt, chief investment official at KDV Wealth Management in Minneapolis, Minnesota.
The Dow Jones industrial typical was down 253. 16 points, or 2. 20%, at 11, 240. 41. The conventional & Poor's 500 Index was down 30. 46 points, or 2. 53%, from 1, 173. 96. The Nasdaq Composite Index was down 65. 71 factors, or 2. 58%, at 2, 480. 33.
Friday marked the S&P's biggest drop in fourteen days.
Despite the day's sharp decline, stocks were only modestly lower for the actual week, after a rally in the first three day of trading. For that week, the Dow fell 0. 4%, the S&P lost 0. 2%, and also the Nasdaq was flat.
Losing stocks outnumbered winners by more than six-to-one on both New York Stock Exchange and Nasdaq. The CBOE Volatility index, a evaluate of investor fear, rose 5. 9%.
Volume was light ahead of the vacation, with about 6. 88 billion shares traded on the New York Stock market, the American Stock Exchange and Nasdaq, below last year's daily average associated with 8. 47 billion.
Netflix Inc weighed on the Nasdaq, falling 8. 6% in order to $213. 11 after the collapse of its content distribution talks with pay-TV owner Starz Entertainment.
Energy shares dropped as US crude futures fell 2. 5% upon concerns economic weakness could curb fuel demand.
Chevron Corp dipped 2. 1% in order to $96. 41, while the PHLX Oil service sector index declined 3. 3%.
Because investors sought safer assets, gold prices climbed 3%. Newmont Mining was the actual S&P's top gainer, rising 3. 2% to $64. 47.