Nasdaq on course to fall into correction territory as U.S. recession fears mount

U.S. stocks fell for a second straight session on Friday, with the Nasdaq Composite on pace to fall into correction territory after a weak jobs report stoked fears of an oncoming U.S. recession.

Chuck Mikolajczak for Reuters:
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The Labor Department said nonfarm payrolls increased by 114,000 jobs last month, well short of the 175,000 of economists polled by Reuters, and the at least 200,000 that economists believe are needed to keep up with population growth. The unemployment rate jumped up to 4.3%, near a three-year high.

“Obviously the jobs number is the big headline, but we seem to have officially entered at least a rational world where bad economic news is read as bad rather than bad economic news is read as good,” said Lamar Villere, portfolio manager at Villere & Co. in New Orleans.

“The Fed is going to cut and we’re all sort of adjusted to that, that is sort of established. Now it’s more like hey, did they wait too long? Do we have a recession on our hands?”

The weak jobs data also triggered what is known as the “Sahm Rule,” seen by many as a historically accurate recession indicator.

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MacDailyNews Take: “Transitory.” (We crack ourselves up sometimes.)
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[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]

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