Stocks slide as jobs report worries investors
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Led by a sharp decline in banks, the stock market is getting hit for the second day in a row as a disappointing jobs report is renewing concerns that the listless economy is headed for even deeper troubles.
Major stock indexes are bathed in a sea of red after a Labor Department report this morning showed that American employers added no new jobs last month while the jobless rate remained an extremely high 9.1%.
As of 10:50 a.m., the Dow Jones industrial average is down 209.94 points, or 1.8%, to 11,283.63. The Standard & Poor’s 500 fell 26.18 points, or 2.2%, to 1,178.24.
The financial sector is getting pummeled after reports that a federal agency overseeing housing giants Fannie Mae and Freddie Mac could bring lawsuits against leading banks over money-losing mortgage securities they sold during the housing boom. A leading bank index is down almost 4%.
European stock markets fell sharply, with France and Germany both down more than 3% and Italy off almost 4%. Stocks in Greece were down 4.5%.
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-- Walter Hamilton