NEW YORK — A dismal jobs report caused stocks to plunge Friday.
The Dow Jones industrial average dropped 253 points, or 2.2 percent, wiping out its gains for the week. All 30 stocks in the average fell.
No jobs were added in the U.S. last month, the government said early Friday. It was the worst employment report in 11 months and renewed fears that another recession could be on the way. The yield on the 10-year note briefly fell below 2 percent and gold jumped $48 an ounce as cash flowed into investments seen as less risky than stocks.
“It’s certainly ugly,” said Jeff Kleintop, chief market strategist at LPL Financial.
European markets followed U.S. stocks lower. They already were down on reports that talks between Greece and international lenders over that country’s debt crisis were breaking down. Germany’s DAX closed down 3.4 percent; France’s CAC-40 lost 3.6 percent.
The lack of hiring in the U.S. last month surprised investors. Economists were expecting 93,000 jobs to be added. Previously reported hiring figures for June and July also were revised lower. The average work week declined and hourly earnings fell.
The unemployment rate held steady at 9.1 percent. The rate has been above 9 percent in all but two months since May 2009.
Kleintop said the jobs report didn’t change his view that the economy was headed for a stretch of weak economic growth, not a recession. He said the figures were likely skewed by unusual events that may have made employers reluctant to add jobs in August.
The Dow slid 253.31 points to close at 11,240.26. It was the biggest drop in two weeks. The Standard & Poor’s 500 index fell 30.45, or 2.5 percent, to 1,173.97.
The Dow fell 0.4 percent for the week, the S&P 0.2 percent. Both indexes have fallen five of the past six weeks.
The Nasdaq composite fell 65.71, or 2.6 percent, to 2,480.33. The technology-heavy index eked out a gain of 0.48 point for the week.
Cash poured into Treasurys and gold, assets believed to be safer bets during a weak economy. The yield on the 10-year Treasury note fell to 2 percent and briefly traded below that level. It was 2.14 percent shortly before the report came out.
Yields fall when demand for bonds increases.
The price of gold rose 2.8 percent to $1,880. Fears that a stalling economy could reduce demand for oil and gasoline pushed benchmark crude oil down $2.48, or 2.8 percent, to $86.45.
